Passaic Co. Doctor Convicted For Role In $160M Health Care Fraud

CLIFTON, NJ — A federal jury convicted a Passaic County doctor Tuesday for her role in a $160 million health care fraud scheme. Alice Chu, who owned and operated a rheumatology practice in Clifton, faces several decades in prison.

The jury found Chu guilty of one count of conspiracy to commit health care fraud and five counts of health care fraud. Her sentencing is scheduled for July 14, when she'll face up to 10 years in prison for each count.

From 2010-19, Chu billed Medicare and other health insurance programs for expensive infusion medication that her practice never purchased, according to the Department of Justice. The Fort Lee resident also fraudulently billed millions of dollars for allergy services that patients never needed or received, according to federal authorities.

Chu, 64, was one of 48 people charged in 2019 for their roles in submitting more than $160 million in fraudulent claims, according to the Justice Department. The takedown included 15 medical professionals — primarily in the Northeast.

Financial incentives propelled the doctor to order expensive and medically unnecessary lab tests for which Medicare paid, according to the Justice Department.

Chu isn't the only Clifton-based doctor to face legal woes recently. Evangelos Megariotis — an orthopedic surgeon who owned and operated Clifton Orthopedic Associates — was indicted Feb. 9 on 34 counts of illegally prescribing 34 controlled substances to his patients.

Megariotis prescribed several drugs without legitimate medical purposes from 2016-18, including oxycodone, Xanax, cough syrup with codeine and stimulants, according to federal authorities. Read more: Passaic Co. Doctor Indicted For Drug Distribution

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