TRENTON
- Attorney General Peter C. Harvey announced
that a Union County pharmacist has pleaded
guilty to Health Care Claims Fraud for
submitting fraudulent prescriptions to
the Medicaid Program. The Medicaid Program,
which is funded by the state and federal
governments, provides health care services
and prescription drugs to persons who
may not otherwise be able to afford such
services and medicines.
According to Vaughn L. McKoy, Director,
Division of Criminal Justice and Insurance
Fraud Prosecutor Greta Gooden Brown, Steven
Aberbach, 59, Stonegate Drive, Watchung,
Somerset County, pleaded guilty on Dec.
19 before Union County Superior Court
Judge Walter R. Barisonek to an Accusation
filed by the Division of Criminal Justice
- Office of Insurance Fraud Prosecutor.
The Accusation charged Aberbach with Health
Care Claims Fraud (2nd degree). Aberbach
faces up to ten years in state prison
and a fine of up to $150,000. He is scheduled
for sentencing by Judge Barisonek on Feb.
13, 2004.
Insurance Fraud Prosecutor Gooden Brown
noted that in pleading guilty, Aberbach
admitted that from August, 2001 through
June, 2003, he submitted fraudulent billings
to the Medicaid Program using the accounts
of legitimate Medicaid patients.
The investigation was conducted by the
Division of Criminal Justice - Office
of Insurance Fraud Prosecutor. State Investigators
Robert McGrath and Anthony Iannice, and
Deputy Attorney General Erik Daab were
assigned to the investigation. DAG Daab
represented the Division of Criminal Justice
- Office of Insurance Fraud Prosecutor
at the guilty plea hearing.
“Abuse
of the Medicaid Program and insurance
fraud by persons who hold professional
licenses are particularly disturbing crimes,”
said Insurance Fraud Prosecutor Gooden
Brown. “Not only do such Medicaid
fraud schemes involve theft of tax dollars,
they also represent a theft from a program
designed to assist persons who can not
afford health insurance or health care
services. Such cases are a priority for
the Office of the Insurance Fraud Prosecutor.”
Insurance Fraud Prosecutor Gooden Brown
noted that the Office of Insurance Fraud
Prosecutor realized a 143 percent increase
in indictments; a 91 percent increase
in defendants charged; a 79 percent increase
in convictions (trial convictions and
guilty pleas); and a 80 percent increase
in civil sanctions in 2002. The Office
of Insurance Fraud Prosecutor charged
225 defendants in 2002, versus 118 defendants
in 2001. Additionally, the Office of Insurance
Fraud Prosecutor imposed sanctions in
3,723 civil fraud cases in 2002, compared
to 2,063 civil sanctions obtained in 2001.
The Office of Insurance Fraud Prosecutor
collected $20.6 million in penalties in
2002, up from $15.8 million in 2001.
Noting that some important cases have
begun with anonymous tips from the public,
Insurance Fraud Prosecutor Gooden Brown
encouraged anyone with information about
insurance fraud to contact the Division
of Criminal Justice - Office of Insurance
Fraud Prosecutor's toll-free hotline at
1-877-55-FRAUD, or to
visit the insurance fraud web site at
www.NJInsurancefraud.org
.
Housed
in the Department of Law and Public Safety's
Division of Criminal Justice and reporting
to the Attorney General, the Office of
the Insurance Fraud Prosecutor was established
by the Automobile Insurance Cost Reduction
Act of 1998 (AICRA). The Office is the
centralized state agency that investigates
and prosecutes civil and criminal insurance
fraud, as well as Medicaid fraud. Criminal
convictions for insurance fraud can result
in fines and imprisonment. Civil penalties
can include substantial fines and referral
for revocation or suspension of professional
licenses.
