New Jersey Doctor Convicted in $100 Million Healthcare Fraud Scheme.

Date posted: April 6, 2017

The Department of Justice (DOJ) recently reported that a Newark federal jury convicted Bernard Greenspan, a 79-year-old New Jersey family physician, of soliciting and accepting kickbacks in a long-running $100 million scheme.  Greenspan was soliciting and accepting bribes in exchange for test referrals to Biodiagnostic Laboratory Services LLC (BLS).  The jury found Greenspan guilty on numerous conspiracy and substantive criminal charges involving wire fraud, the Federal Travel Act and the Anti-Kickback Statute.  The scheme resulted in the payment of approximately $100 million in claims from Medicare and private insurers from BLS.

Trial evidence demonstrated the following:

  • From 2006 to 2013, Greenspan solicited and accepted approximately $200,000 in bribes from BLS employees in exchange for sending test referrals to BLS;
  • Greenspan solicited and received bribes through sham rental payments, and falsified consultation fees and service arrangements;
  • Greenspan solicited and received bribes, such as payment for office holiday parties and additional cash bribes for ordering specific blood tests; and
  • Greenspan caused BLS to hire his former patient with whom he was having a sexual relationship.

Federal courts have convicted 43 other individuals involved in this scheme, including 29 doctors.  In 2016, BLS pleaded guilty and forfeited all of its assets.  Several federal agencies were involved in handling the investigation including the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General.

The DOJ Justice News article is available at:

https://www.justice.gov/usao-nj/pr/bergen-county-doctor-convicted-taking-bribes-test-referral-scheme-new-jersey-clinical-lab.

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