Another Scam Busted: Another 24 Doctors Convicted

 

Makes us proud to be an American

Makes us proud to be an American

“Individual greed has no place in a treatment plan, and people seeking medical help deserve to know a doctor’s recommendations are based on professional expertise, not illicit profits.”

(Federal Prosecutor Paul Fishman)

In Newark New Jersey U.S. District Court a medical services salesman was convicted Tuesday in a doctor/laboratory kickback scheme that funneled $400,000 to a Parsippany blood lab.

Michael Zarrelli, age 48, changed his ‘not guilty’ plea to ‘guilty’ to charges of conspiracy and money laundering before Judge Stanley Chesler.

Zarrelli, of Berkeley Heights, is one of 36 criminals, including 24 physicians, convicted for their part in a $100 million bribery scheme with Biodiagnostic Laboratory Services.  Three of the more prominent thieves are:

Doctor Glenn R. Leslie of Ramsey, whose clinic is located in the town of Mahwah – he confessed to taking $5,000 a month over a 16-month period for referring patients to BLS

Doctor Claudio Dicovsky – a psychiatrist in Paterson – admitted taking $225,000 for referring patients to BLS

Doctor Angelo Calabrese – North Arlington – took $130,000

Zarrelli confessed in court that he joined with BLS president David Nicoll and others to pay cash to physicians. In return, they would send their patients’ blood samples exclusively to the Parsippany lab.

Former president of BLS – Scott Nicoll – also convicted, said “hundreds of doctors demanded bribes and kickbacks” as part of a $100,000,000 Medicare and insurance billing scheme.

What do you do with stolen insurance money? BLS President Scott Nicoll bought hot cars

What do you do with stolen insurance money? BLS President Scott Nicoll bought hot cars

The scam, believed to have started in early 2011 and have gone on for two years, involved Zarrelli recruiting doctors, who would refer their patients’ blood work to BLS for testing. BLS would then bill Medicare and private insurers for performing the tests.

Zarrelli, who could get a 25-year federal prison sentence faces a $750,000 fine.

According to the prosecution, many of the criminal doctors brought in even more illegal money by ordering more expensive blood tests than were necessary. The lab rewarded them for their fraudulent health care.

Investigators discovered the medical and financial records when they raided BLS, which documented the thefts and proved the conspiracy.

Zarrelli, who could get a 25-year federal prison sentence faces a $750,000 fine.

Here’s another look at this case:

http://www.northjersey.com/news/aetna-sues-medical-lab-doctors-in-insurance-fraud-case-1.1061181

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2 thoughts on “Another Scam Busted: Another 24 Doctors Convicted

  1. Charles says:

    I just don’t understand why there is not more public outrage at these massive thefts by doctors.

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