NEWARK, NJ—A physician with a practice in Madison, New Jersey admitted today to accepting bribes of $2,000 per month in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, New Jersey; its president; and numerous associates, U.S. Attorney Paul J. Fishman announced.
Wayne Lajewski, 51, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
According to documents filed in this and other cases and statements made in court:
Lajewski admitted he accepted bribes of $2,000 cash per month over two years in return for referring patient blood specimens to BLS, for which BLS received more than $850,000.
The bribery count to which Lajewski pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2014. As part of his guilty plea, Lajewski agreed to forfeit $48,000, representing the bribes he received from BLS.
Including Lajewski, 26 people—including 15 physicians—have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution, and forfeiture under the False Claims Act; the Food, Drug, and Cosmetic Act and other statutes.
Showing posts with label bribes. Show all posts
Showing posts with label bribes. Show all posts
Thursday, April 10, 2014
Tom’s River Chiropractor Admits Receiving Bribes for Patient Referrals
NEWARK—A chiropractor with a practice in Toms River, New Jersey admitted today to accepting bribes to refer a number of his patients to a New Jersey-licensed pain management physician, U.S. Attorney Paul J. Fishman announced.
Norman Eastburn, 48, of Jackson, New Jersey, pleaded guilty to an information charging him with one count of violating the Anti-Kickback statute. He entered his guilty plea before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
Eastburn was paid a cash fee per patient he referred to the pain management physician. As part of the scheme, the pair negotiated specific kickback amounts that would be paid based on which payor would be billed—Medicare or a private healthcare insurer—and what type of pain treatment would be rendered.
Eastburn indicated to the pain physician that a medical doctor’s involvement in pain procedures would increase Eastburn’s likelihood of being reimbursed by insurers. As an example, Eastburn recounted a prior situation in which he misled a patient by telling her that she required an injection that he did not then believe, in fact, was medically necessary and then paid a doctor $500 in cash to administer it.
The violation of the Anti-Kickback statute carries a maximum potential penalty of five years in prison and a $250,000 fine. In addition, Eastburn has agreed to forfeit to the United States the money he was paid in bribes. Sentencing is scheduled for July 8, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, with the investigation.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution, and forfeiture under the False Claims Act; the Food, Drug, and Cosmetic Act; and other statutes.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Norman Eastburn, 48, of Jackson, New Jersey, pleaded guilty to an information charging him with one count of violating the Anti-Kickback statute. He entered his guilty plea before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
Eastburn was paid a cash fee per patient he referred to the pain management physician. As part of the scheme, the pair negotiated specific kickback amounts that would be paid based on which payor would be billed—Medicare or a private healthcare insurer—and what type of pain treatment would be rendered.
Eastburn indicated to the pain physician that a medical doctor’s involvement in pain procedures would increase Eastburn’s likelihood of being reimbursed by insurers. As an example, Eastburn recounted a prior situation in which he misled a patient by telling her that she required an injection that he did not then believe, in fact, was medically necessary and then paid a doctor $500 in cash to administer it.
The violation of the Anti-Kickback statute carries a maximum potential penalty of five years in prison and a $250,000 fine. In addition, Eastburn has agreed to forfeit to the United States the money he was paid in bribes. Sentencing is scheduled for July 8, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, with the investigation.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution, and forfeiture under the False Claims Act; the Food, Drug, and Cosmetic Act; and other statutes.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Thursday, September 12, 2013
New Jersey doctors admit taking bribes in Biodiagnostic Laboratory Services case
Two New Jersey doctors pleaded guilty Wednesday to accepting thousands of
dollars in bribes from a laboratory company that operated a widespread kickback
scheme to win referrals, the U.S. attorney said.
Angelo Calabrese, a doctor with an office in North Arlington, and Paul Ostergaard, a doctor with an office in Pompton Plains, said they accepted the money from Biodiagnostic Laboratory Services LLC, violating the Travel Act, which forbids the use of the U.S. mail to break the law.
Parsippany-based Biodiagnostic Laboratory Services was a clinical laboratory that tested blood specimens.
The company set up shell entities to pay bribes to doctors who both sent it blood samples and ordered unnecessary tests. It then billed Medicare and private insurers, generating more than $100 million. Some of the physicians received more than $100,000 in bribes from January 2006 through April 2013, the government has said.
So far, 11 company employees, including its executives, have pleaded guilty for their roles in the scheme. Three of the employees are Monmouth County residents: Salesmen Len Rubinstein of Holmdel, Cliff Antell of Rumson, and William Dailey of Wall have pleaded guilty to bribing physicians.
Calabrese and Ostergaard pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark. They are among six doctors who have pleaded guilty to accepting payments. The others are: Dennis Aponte of Cedar Grove; Claudio Dicovsky of Fort Lee; Franklin Dana Fortunato of Montville; and Frank Santangelo of Boonton.
“We are continuing to pursue those defendants, including doctors, who put personal profits ahead of patient care,” U.S. Attorney Paul Fishman said.
According to authorities:
• Calabrese, 56, of Pine Brook, received more than $130,000 from Biodiagnostic Laboratory Services between 2010 and 2013.
• Ostergaard, 72, of Pompton Plains, received more than $50,000 from the company between 2006 and 2009. He said that he noticed the company added tests he didn’t order, but he stayed silent about it, the government said.
• David McCann, 45, of Lyndhurst, a salesman for Biodiagnostic Laboratory Services, also pleaded guilty Wednesday.
Angelo Calabrese, a doctor with an office in North Arlington, and Paul Ostergaard, a doctor with an office in Pompton Plains, said they accepted the money from Biodiagnostic Laboratory Services LLC, violating the Travel Act, which forbids the use of the U.S. mail to break the law.
Parsippany-based Biodiagnostic Laboratory Services was a clinical laboratory that tested blood specimens.
The company set up shell entities to pay bribes to doctors who both sent it blood samples and ordered unnecessary tests. It then billed Medicare and private insurers, generating more than $100 million. Some of the physicians received more than $100,000 in bribes from January 2006 through April 2013, the government has said.
So far, 11 company employees, including its executives, have pleaded guilty for their roles in the scheme. Three of the employees are Monmouth County residents: Salesmen Len Rubinstein of Holmdel, Cliff Antell of Rumson, and William Dailey of Wall have pleaded guilty to bribing physicians.
Calabrese and Ostergaard pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark. They are among six doctors who have pleaded guilty to accepting payments. The others are: Dennis Aponte of Cedar Grove; Claudio Dicovsky of Fort Lee; Franklin Dana Fortunato of Montville; and Frank Santangelo of Boonton.
“We are continuing to pursue those defendants, including doctors, who put personal profits ahead of patient care,” U.S. Attorney Paul Fishman said.
According to authorities:
• Calabrese, 56, of Pine Brook, received more than $130,000 from Biodiagnostic Laboratory Services between 2010 and 2013.
• Ostergaard, 72, of Pompton Plains, received more than $50,000 from the company between 2006 and 2009. He said that he noticed the company added tests he didn’t order, but he stayed silent about it, the government said.
• David McCann, 45, of Lyndhurst, a salesman for Biodiagnostic Laboratory Services, also pleaded guilty Wednesday.
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