A federal judge has granted Bradley Pierre’s request to vacate his default in a civil racketeering case brought by the American Transit Insurance Company, allowing the defendant to contest allegations that he orchestrated a multimillion-dollar insurance fraud scheme involving staged medical referrals.
Judge Rachel P. Kovner, of the US District Court for the Eastern District of New York, adopted a magistrate’s recommendation to give Mr. Pierre his day in court, finding that he had asserted a plausible defense and that the insurance company would not be unduly prejudiced by reopening the case.
The lawsuit, filed in January 2024, accuses Mr. Pierre of masterminding a bribery scheme in which he and others paid 911 operators and hospital employees to steer automobile accident victims to two medical entities: Rutland Medical P.C. and Nexray Medical Imaging, P.C., also known as Soul Radiology Medical Imaging. Both entities are alleged to have posed as legitimate professional corporations while secretly under Mr. Pierre’s control - an arrangement the insurer contends violates New York law.
American Transit, a leading provider of No-Fault liability insurance for taxi and livery vehicles, claims it was defrauded through the submission of sham insurance claims generated by this referral network. The suit seeks relief under the Racketeer Influenced and Corrupt Organizations Act (RICO), the Declaratory Judgment Act, and state law.
After being served with the complaint in January 2024, Mr. Pierre failed to respond, prompting the court to enter a default against him. The insurer moved for a default judgment, but Mr. Pierre, represented by new counsel, sought to set aside the default, citing difficulties retaining representation following his guilty plea in a related federal criminal case.
Magistrate Judge Cheryl L. Pollak recommended vacating the default, noting that Mr. Pierre had made good-faith efforts to obtain legal counsel and had not deliberately ignored the litigation. She further found that Mr. Pierre had raised a potentially valid defense—specifically, his denial that he exercised de facto control over the medical corporations at the heart of the scheme.
Judge Pollak also determined that vacating the default would not cause significant prejudice to the insurer, which argued primarily that delays and legal costs justified denying Mr. Pierre’s motion.
Judge Kovner concurred, observing that courts generally disfavor defaults and prefer cases to be decided on their merits. Even assuming Mr. Pierre’s conduct was willful, she noted, his defense and the lack of meaningful prejudice to the insurer tipped the balance in his favor.
The judge ordered Mr. Pierre to reimburse American Transit for reasonable attorney fees incurred while litigating the default issue. He must file a formal response to the complaint within 21 days.
The insurer’s motion for default judgment against Mr. Pierre was denied, though it retains the option to pursue default judgment against co-defendant Rutland Medical P.C.
Founded in 1979, American Transit Insurance Company (ATIC) is a New York-based insurance carrier primarily specializing in providing commercial automobile insurance. The company is best known for its focus on insuring livery vehicles, including taxis, black cars, and other for-hire transportation services. Given its niche focus, ATIC plays a critical role in the New York City transportation sector, offering coverage tailored to the unique risks and regulatory requirements of this market.
ATIC underwrites liability insurance, including bodily injury and property damage coverage, as well as personal injury protection (PIP) and physical damage coverage. Its policies are designed to comply with New York State’s insurance mandates, particularly those governing the high-density, high-traffic environment of New York City.
The company has garnered a reputation for its hands-on approach to claims handling, employing a network of adjusters and legal professionals familiar with the complexities of commercial auto claims. However, as with many insurers focused on high-risk transportation markets, ATIC has faced challenges, including legal disputes over coverage denials, policy exclusions, and its duty to defend policyholders in personal injury lawsuits.
Financially, ATIC operates as a privately held entity, and while it serves a specific niche, it competes with larger national insurers and other regional carriers within the commercial auto sector.
Case Name:
American Transit Insurance Company v. Bradley Pierre, et al.
Case No.:
24-CV-360 (RPK) (CLP)
Court:
U.S. District Court, Eastern District of New York
Judge:
Rachel P. Kovner
Magistrate Judge:
Cheryl L. Pollak
Plaintiff:
American Transit Insurance Company
Defendants' Counsel:
Bradley Pierre represented by Cary Scott Goldinger and Adam B. Dressler
