New York City has initiated a federal racketeering lawsuit against the Manhattan-based law firm Asher & Associates, alleging the firm engaged in a decade-long scheme to defraud the city through fabricated personal injury claims. The complaint, filed in the Southern District of New York, accuses the firm and its principals, Ryan and Roberta Asher, of orchestrating a pattern of fraudulent litigation that has cost the city millions of dollars.
The lawsuit contends that Asher & Associates systematically filed lawsuits based on false accident narratives, often attributing injuries to nonexistent roadway defects. The city alleges that the firm employed “runners” to solicit clients and collaborated with litigation funders to finance these cases. When confronted with contradictory evidence, the firm purportedly abandoned the cases, leaving the city to bear the financial burden of defending against these unfounded claims.
Over the past ten years, the firm is alleged to have pursued hundreds of such fraudulent claims, seeking tens of millions of dollars in damages. The city’s complaint specifically documents 15 cases and names nine unidentified defendants, referred to as John Does, who are believed to have participated in the scheme.
This legal action is brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a federal statute designed to combat organized crime and fraudulent business practices. By invoking RICO, the city aims to address the alleged pattern of racketeering activity and recover funds lost to these fraudulent claims.
The case underscores the city’s commitment to protecting taxpayer dollars from fraudulent litigation and serves as a warning to legal practitioners about the severe consequences of engaging in deceptive practices. The outcome of this lawsuit could have significant implications for how personal injury claims are processed and scrutinized in New York City moving forward.