The investigation into Biodiagnostic Laboratory Services’ sweeping test-referral scheme has resulted in nearly 50 convictions and the recovery of more than $13 million through forfeiture.
This article is excerpted from an article originally published on the Credentialing Resource Center, July 12, 2017.
Bernard Greenspan, a family physician who practiced in Bergen County, New Jersey, will spend 41 months in prison for accepting bribes in exchange for referring patients to Biodiagnostic Laboratory Services (BLS) in Parsippany, New Jersey, as part of a scheme operated by the blood-testing lab.
According to the U.S. Department of Justice, BLS operated a bribery scheme in which it paid physicians to refer their patients to BLS. In total, BLS received more than $100 million in payments from Medicare and private insurance companies as result of its scheme. In June 2016, BLS pleaded guilty to the scheme and forfeited all of its assets.
For his participation in the scheme, Greenspan was convicted of multiple charges, including violating the Anti-Kickback Statute and the Federal Travel Act, and wire fraud. From March 2006 to April 2013, Greenspan received approximately $200,000 in bribes from BLS in exchange for referrals. Those referrals generated approximately $3 million in business for BLS.
In addition to his prison sentence, Greenspan was fined $125,000 and ordered to forfeit more than $200,000.
Two other individuals were recently charged in connection with the BLS scheme. Cardiologist Aiman Hamdan and his wife, Kristina Hamdan, of Wayne, New Jersey, have been indicted on charges of violating the Anti-Kickback Statute and the Federal Travel Act, and of wire fraud.
According to their indictments, Aiman Hamdan allegedly received bribes from BLS from September 2008 to April 2013 in exchange for referrals. BLS also provided him with a $500,000 loan and a trip to Florida on a private jet to go fishing and visit strip clubs. Kristina Hamdan allegedly used a sham entity to pay bribes on BLS’ behalf to several other doctors.
Five physicians also recently pleaded guilty to their charges in connection with the scheme. The physicians—all from the New York and New Jersey area—admitted to accepting bribes from BLS and generating millions of dollars in referrals. They will be sentenced in December.
The investigation into BLS has resulted in nearly 50 convictions and the recovery of more than $13 million through forfeiture.
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