New York Insurance Fraud Ring Busted
Manhattan District Attorney Robert M. Morgenthau announced today the indictment of 15 people, including four doctors, a dentist, a psychologist, and an acupuncturist, on charges of participating in an insurance scam in which the New York City Transit Authority which is self-insured and private insurance companies were falsely billed for professional medical services that were never provided. A medical billing company, two heath care clinics that were also professional medical corporations and three other professional medical corporations were also indicted today.
The two-part investigation leading to today’s indictment began 18-months ago when insurance investigators from the New York City Transit Authority’s Special Investigation Unit, working with the Manhattan District Attorney’s Rackets Bureau, began an undercover investigation into PREMIER MEDICAL CARE, PC. Ten months later, investigators from the New York Police Department’s Fraudulent Accident Investigation Squad began an undercover operation at the OMNI MEDICAL CARE.
People indicted today: INNA PUSTILNIK, A/K/A INNA POST (ABRAHAM PUSTILNIK’s wife), a psychologist; MICHAEL CONRAD, STUART PRESS, GERARDO YANAYACO and VICTOR BASBUS, all licensed physicians; PAUL SELINGER, a licensed dentist; JONATHAN LEIBELL, a licensed chiropractor and acupuncturist; LENA MARJORIE CHASE, a physical therapist; and INGA EILENKRIG, a licensed social worker; GALINA NOVOFASTOVSKY, aka GALINA NOVO, the manager of PREMIER MEDICAL CARE; and BELLA MAMALADZE, SVETLANA LOYKO AVAKOV and NATALIA VOYNOVA, all of whom are front desk reception employees at OMNI MEDICAL CARE.
The indictment identified three kinds of scams:
- Billings for services in which the defendants claimed that they had seen and treated the undercovers on dates when they had not.
- Billings in which the defendants “up coded”
- Billings in which the defendants ordered medically unnecessary testing