TRENTON
- Attorney General Paula T. Dow and Acting
Insurance Fraud Prosecutor Ronald Chillemi
announced that The Center for Lymphatic
Disorders, LLC, and its office manager have
pleaded guilty to charges that they defrauded
Medicare and Medicaid of millions of dollars.
According
to Acting Insurance Fraud Prosecutor Ronald
Chillemi, Farah Iranipour Houtan, 54, of
Egg Harbor Township, N.J., and The Center
for Lymphatic Disorders, LLC (“CLD”),
which has its primary location in Egg Harbor,
pleaded guilty yesterday (Sept. 29) to third-degree
health care claims fraud. In a parallel
civil proceeding, Dr. Khashayar Salartash,
an owner of The Center for Lymphatic Disorders,
entered into a consent agreement requiring
him to pay $3 million in restitution to
the Medicaid and Medicare programs related
to the fraudulent acts committed by Houtan
and CLD. The pleas and consent order were
entered before Superior Court Judge Bernard
E. DeLury Jr. in Atlantic County. As a result
of its plea, CLD has been barred from participation
in the Medicaid program. The parties also
agreed that CLD would pay a $50,000 fine.
Defendant
Houtan, the office manager for CLD and aunt
of Dr. Salartash, admitted that between
January 2004 and June 2007, she recklessly
billed the Medicaid and Medicare programs
for services that were not provided to patients.
As a result of Houtan’s fraudulent
submission of health care claims, Medicaid
and Medicare reimbursed CLD $3 million to
which it was not entitled.
“Fraud
against the Medicaid and Medicare programs
drains hundreds of millions of dollars each
year in federal and state funds that are
needed to ensure vital health care for low-income
and older Americans,” said Attorney
General Dow. “We are making these
cases a top priority.”
“We
will vigorously prosecute those who would
steal our precious healthcare dollars through
fraudulent billings,” said Acting
Insurance Fraud Prosecutor Chillemi, who
appeared before Judge DeLury to take the
guilty pleas and enter the consent order
yesterday.
This
matter was investigated by the Medicaid
Fraud Control Unit of the Office of the
Insurance Fraud Prosecutor, the United States
Department of Health and Human Services
Office of the Inspector General, and the
Federal Bureau of Investigation. Acting
Insurance Fraud Prosecutor Chillemi, Assistant
Attorney General Louise Lester, Deputy Attorney
General Oriana Nadraga, Sgt. Joseph Jaruszewski,
Analysts James Reilly and B’leia Williams,
Auditor Kim Geis, and Legal Assistant Mona
Patel investigated the matter for the State.
The investigation started after analysts
contracted by Medicare to monitor billing
identified unusual billing submitted by
The Center for Lymphatic Disorders, LLC.
Third-degree
health care claims fraud carries a maximum
sentence of five years in state prison and
a criminal fine of up to $15,000.
The
Medicaid Program is funded by the state
and federal governments. The State of New
Jersey administers the Medicaid Program
through the Division of Medical Assistance
and Health Services and the Office of the
Insurance Fraud Prosecutor’s Medicaid
Fraud Control Unit, which investigates both
criminal and civil Medicaid fraud and abuse.
Sentencing
is scheduled for Nov. 10 before Judge DeLury.
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