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For Immediate Release:
For Further Information:
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April 7, 2010

Office of The Attorney General
- Paula T. Dow, Attorney General
Division of Criminal Justice
- Stephen J. Taylor, Director
Office of the Insurance Fraud Prosecutor
- John Kennedy, Acting Insurance Fraud Prosecutor

Media Inquiries-
Peter Aseltine
609-292-4791
Citizen Inquiries-
609-292-4925

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Matawan Doctor Charged with Taking Cash Payments to Write False Narcotics Prescriptions to Medicaid Recipients
Physician allegedly made exchanges from his car in parking lot of restaurant on Route 1

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Dr. Ki I. Song
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TRENTON - Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a doctor who lives in Matawan was arrested today on charges that he wrote fraudulent prescriptions for narcotics, including Percocet and Xanax, for Medicaid recipients in return for large sums of cash. The doctor met customers in a restaurant parking lot on Route 1.

According to Director Taylor, Dr. Ki I. Song, 69, of Matawan, was arrested in Old Bridge during a motor vehicle stop on Matawan Road, a short distance from his home. He was charged by complaint with second-degree distribution of a controlled dangerous substance.

The charge is the result of an ongoing investigation by the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit and the Jersey City Police Department’s Special Investigation Unit. This investigation stems from a prior investigation by the agencies called Operation MedScam. If convicted of the second-degree offense, Song would face five to 10 years in state prison and a criminal fine of up to $150,000.

“It is deeply troubling that a licensed physician is alleged to have been, in essence, dealing dangerous narcotics out of his car,” said Attorney General Dow. “We will not tolerate health care professionals who abuse their licenses to turn an illicit profit.”

“This case is an offshoot of Operation MedScam, in which 32 defendants were convicted for their roles in a criminal network that distributed narcotics in five New Jersey counties,” said Director Taylor. “Working with the Jersey City Police, our attorneys and detectives are pursuing any leads developed in that investigation, including these allegations involving Dr. Song.”

“We are committed to working jointly with the Division of Criminal Justice in stopping the illegal flow of narcotics throughout the State of New Jersey. Every doctor investigated and arrested for this type of crime is one less drug dealer on the streets of New Jersey,” said Chief Comey of the Jersey City Police Department.

Song is a licensed hematologist and oncologist who formerly had a practice on Cottage Street in Jersey City. He now lists his residence as his medical office.

It is alleged that Song has been writing fraudulent prescriptions for Medicaid recipients for narcotics, including the painkiller Percocet and the anti-anxiety medication Xanax. The prescriptions were not medically necessary. Both drugs are addictive narcotics that are frequently sold on the street and abused by addicts. Song filled out the prescription forms so the purchasers could fill the prescriptions at pharmacies.

Song allegedly would take orders by phone and meet prescription purchasers in the parking lot of a restaurant on Route 1 South at Gill Lane in Iselin. It is alleged that Song would typically collect $100 in cash per completed prescription form. He would write each prescription for 90 pills. It is alleged that he most frequently wrote prescriptions for Percocet, but he also wrote them for Xanax. Song allegedly wrote the prescriptions without obtaining any patient history or performing any patient examination.

Song was lodged in the Middlesex County Jail with bail set at $100,000.

Detectives executed search warrants today for Song’s residence and one of his cars, a Subaru Baja that he allegedly used to meet people who purchased prescriptions. Client records, approximately $35,000 in cash, several prescriptions prepared for delivery, and other evidence were seized from the home. The Attorney General’s Office has filed a forfeiture action to seize his residence/office, the Baja and U.S. currency recovered today as alleged proceeds or instruments of his criminal conduct. The seizures were valued at more than $500,000.

This matter is being referred to the New Jersey Board of Medical Examiners for recommended action against Song’s license to practice medicine in New Jersey. His medical license is set to expire on June 30, 2011, if it is not renewed.

These individuals are assigned to the investigation for the OIFP Medicaid Fraud Control Unit: Detective Kevin Gannon, Sgt. Frederick Weidman, Deputy Attorney General Debra A. Conrad and Deputy Attorney General Erik Daab, Chief of the Medicaid Fraud Control Unit.

The following members of the Jersey City Police Department’s Special Investigation Unit are assigned to the investigation, under the supervision of Chief Thomas Comey: Lt. Fred Younger, Sgt. Anthony Musante, Sgt. Ed Nestor, Detective Wael Shahid, Detective Jeff Guilfoyle, Detective Vincent Disbrow, Police Officer Alex Torres, Police Officer Chris Dolan, Police Officer Eamon Nally, Police Officer Joseph Anzivino and Detective Erik Infantes.

Deputy Attorney General Carol Stanton Meier, Sgt. Kathleen Casey and Analyst Bethany Schussler are assigned to the asset forfeiture action for the Division of Criminal Justice.

The complaint is merely an accusation and the defendant is presumed innocent until proven guilty. Because the charge is an indictable offense, the case will be presented to a state grand jury for potential indictment.

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