TRENTON
- Attorney General Peter C. Harvey announced
that the fugitive former owner of a Middlesex
County invalid coach transportation company
has been sentenced to seven years in state
prison for defrauding the Medicaid program
of more than $472,000.
According to Vaughn L. McKoy, Director,
Division of Criminal Justice and Insurance
Fraud Prosecutor Greta Gooden-Brown, Genady
Chulak, 48, Toronto, Canada, the former
owner of GGE Impact Corporation, t/a as
Medicall, was sentenced by Middlesex County
Superior Court Judge Jane Bruskin Cantor
to seven years in state prison and ordered
to pay $944,629 in fines and restitution.
Insurance Fraud Prosecutor Gooden-Brown
noted that Chulak was convicted on Dec.
14, 2000 by a Middlesex County jury on
charges of theft by deception, corporate
misconduct, and Medicaid Fraud. After
the conviction, Chulak failed to appear
for sentencing and Judge Cantor issued
a bench warrant for Chulak’s arrest.
Chulak was arrested on Dec. 30, 2004,
by the Immigration and Naturalization
Service as he was attempting to enter
the United States from Canada.
During the jury trial, the Insurance Fraud
Prosecutor’s Medicaid Fraud Section
presented evidence that Chulak, and his
wife, Elana Bilenkin, inflated mileage
charges for invalid coach transportation
services provided to Medicaid patients
who needed such services to travel to
and from doctor’s offices and other
medical service provider’s offices.
Chulak was also charged with paying kickbacks
to Medicaid patients for using the Medicall
vans for transportation. The jury found
that Chulak inflated mileage charges so
that the Medicaid Program was falsely
billed for inflated mileage transportation
charges for Medicaid patients.
Chulak’s wife, Elana Bilenkin, 34,
also of Old Bridge, pleaded guilty to
Medicaid Fraud and was sentenced by Judge
Cantor to four years probation and ordered
to perform 100 hours of community service.
The investigation of Chulak and the Medicall
transportation company began after the
Office of Insurance Fraud Prosecutor -
Medicaid Fraud Section conducted a search
of Medicall’s Corporate Office,
formerly located at 287 Kimble Street,
Woodbridge, Middlesex County. The Office
of the Insurance Fraud Prosecutor also
seized certificates of deposit allegedly
representing fraudulently obtained Medicaid
money and vans that were used to transport
patients.
The investigation was conducted by the
Division
of Criminal Justice - Office of the
Insurance Fraud Prosecutor’s Medicaid
Fraud Section which investigates and prosecutes
criminal Medicaid fraud cases. The Medicaid
Program is funded by the state and federal
governments and provides health care services
and prescription drugs to persons who
may not otherwise be able to afford such
services and medicines.
Supervising State Investigator Russell
Rizzo, former State Investigator David
Weinfeldt, and Supervising Deputy Attorney
General John Krayniak and Deputy Attorney
General Francine Ehrenberg were assigned
to the investigation. SDAG Krayniak prosecuted
the case.