“Blood is not a commodity that doctors are allowed to sell.” (Assistant U.S. Attorney Danielle A Walsman)
In the city of Newark Federal Court, a 79-year-old doctor is now on trial. Lord knows he isn’t the only doctor on trial this week – there are at least 10 dozen others. But this fellow appears to have been throat-deep in a massive healthcare wealth-building scam that featured all the aspects of a made-for-TV movie: secret envelopes stuffed with cash; luxurious private jet trips world-wide; physician mistresses and dressed-to-the-nines call-girls.
“Some doctors frolicked with prostitutes or received $50,000 monthly cash payments stuffed in envelopes.”
Doctor Bernard Greenspan – at least according to federal prosecutors – was perfectly willing to rake in $200,000 in bribe money from a now-closed scam-lab called Biodiagnostic Laboratory Services, in Parsippany, in exchange for sending his patients’ blood samples exclusively there.
Greenspan’s attorney is Mr. Damian Conforti, and he argues that the doctor did nothing illegal, that he even cooperated with law enforcement 4 years before Biodiagnostic Laboratory Services was charged.
More than 40 people, including 27 New York and New Jersey doctors, have already confessed their guilt over the last 4 years.
Investigators believe $3,000,000 was raked in by the lab, by its illegal arrangement with Greenspan, who is charged with Conspiracy, violating federal Anti-Kickback laws and Honest Services Fraud.
U.S. Attorney Paul Fishman says Medicare was defrauded out of tens of millions of dollars.
David Nicoll, the company president and a former pharmaceutical salesman; his brother, Scott, who previously sold concert tickets for a living; and Craig Nordman, David Nicoll’s cousin, are among those who have pleaded guilty.
Nicoll is now testifying against Greenspan, and already faces 25 years in prison. Authorities have proven he spent $390,000 on tickets to sporting events and $300,000 on a Ferrari – all out of illegal company profits.
The investigation of Biodiagnostic Laboratory Services underscored federal officials’ increased focus on health care fraud over the last 10 years. According to a Department of Health and Human Services and the Department of Justice annual report, the federal government was able to recover $2,500,000 in stolen health fraud money.
Since the beginning of Medicare fraud strike force teams nationwide, beginning in 2007, charges have been brought against more than 3,000 defendants who illegally billed Medicare more than $10,000,000.