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For Immediate Release:
For Further Information:
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September 30, 2011

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

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

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Office Manager and Company Plead Guilty to Defrauding Medicaid & Medicare of $3 Million

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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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