Wayne Doctor Sentenced To 5 Years In Medical Bribe Scheme

A doctor with an office in Wayne was sentenced to 63 months in prison Wednesday for accepting more than a $1 million in bribes as part of a long-running kickback scheme.

Frank Santangelo, 45, of Boonton, accepted more than $1.8 million in bribes from Biodiagnostic Laboratory Services LLC (BLS) to refer patients to the lab. BLS was paid more than $6 million by Medicare and other insurance companies for performing the work from the referrals.

Santangelo pleaded guilty in July 2013 to charges of money laundering, failing to file tax returns, and for violating the Travel Act. Santangelo also has an office in Montville.

“Santangelo admitted he violated the trust of his patients, who should be able to count on their doctors’ prescribing only tests that are necessary and recommending providers based solely on their qualifications,” Fishman said. “This type of fraud compromises patient care and drives up the cost of health care.”

Santangleo received more than $800,000 through sham lease and service agreements between 2006 and 2010. He also received bribes from BLS through a third party — often tens of thousands of dollars a month — totaling more than $1 million between 2010 and April 2013 when he was arrested.

Including Santangelo, 38 people, 26 of them doctors, have pleaded guilty in connection with the bribery scheme. The scheme’s organizers have admitted it involved millions of dollars in bribes, resulting in more than $100 million in Medicare and other insurance payments to BLS.