Bergen County Man Charged With Money Laundering In Insurance Scheme

A Bergen County man was charged with money laundering and tax evasion for participating in an illegal insurance scheme, authorities announced.

James Hill, 50, of Hasbrouck Heights, allegedly accepted payments from Dr. Kenneth Gross, a Passaic-based chiropractor, for illegally referring patients to Gross’ practice, Passaic County Prosecutor Camelia Valdes said.

Gross allegedly paid Hill for illegally referring patients to Gross so Gross could treat them and file claims with their insurance companies; the payments were “laundered and disguised” and Hill did not pay state income tax on the money, Valdes said.

Also charged in the scheme were Gross’ wife, Dr. Michelle Dubnoff, a chiropractor, and Dr. James Morales, an orthopedist. The three also allegedly referred patients between themselves ”to commit health claims” and ”maximize insurance payment,” Valdes said. Dubnoff and Morales have practices in Toms River.

Dubnoff, Gross, and Morales filed bills with various insurance companies to create a “false impression” that the three practices were independent of each other and the referrals were made on a professional basis “for the best interests of the patients,” authorities said, but they were related by “family and financial” connections.

Hill was charged with illegal running, conspiracy to commit health claims fraud, tax evasion, and money laundering. He faces a maximum of 25 years in prison if convicted on all charges.