Largest Health Care Fraud Crackdown In U.S. History Includes 8 NJ Residents, Feds Say

UNION COUNTY, NJ — Eight New Jersey residents are among 455 people charged in what federal officials say is the largest health care fraud enforcement action in U.S. history.

The crackdown, announced Wednesday by the U.S. Department of Justice, spans 45 states and territories and centers on more than $6.5 billion in suspected fraud, illegal kickbacks, improper prescription practices and other health care crimes, authorities said.

Federal officials said the cases reached 56 federal districts and involved all 50 state Medicaid Fraud Control Units, making it the largest coordinated effort of its kind ever undertaken by the Justice Department.

Authorities said the schemes led to major financial losses for government health care programs and, in some cases, harmed patients.

The investigation involved 90 doctors and other licensed medical professionals nationwide, according to federal officials.

As part of the crackdown, authorities said the federal government seized more than $182 million in cash, luxury vehicles, jewelry and other assets connected to the cases. More than 1,000 providers were also suspended from federal health care programs by the Centers for Medicare and Medicaid Services.

Among those charged are eight New Jersey residents accused of participating in a variety of schemes involving Medicaid billing, kickbacks and controlled substances.

Federal prosecutors said Greelensky Charles, 40, of Union County, operated an ambulance transportation business without the required licensing and submitted more than $11 million in insurance claims.

Sherif Elmasari, 45, of Spotswood and the owner of a pharmacy, was charged with conspiracy to commit health care fraud and conspiracy to violate federal anti-kickback laws. Prosecutors said the scheme caused approximately $20.7 million in losses to Medicare and Medicaid through referral payments tied to prescription reimbursements.

Ashlee Maixner, 39, an advanced practice nurse from Lakehurst, was charged with conspiracy to defraud the United States, unlawful distribution of controlled substances and soliciting and receiving kickbacks. Prosecutors said she issued prescriptions following brief text-message exchanges with patients as part of a scheme that resulted in approximately $1.65 million in losses to Medicare and Medicaid.

Michael Servon, 43, of Toms River, was charged with health care claims fraud, Medicaid fraud and theft by deception. Prosecutors said he billed Medicaid for caregiving services that were never provided, including during periods when the beneficiary was hospitalized and after the beneficiary had died.

Two additional New Jersey residents — Pervez Siddiqui, 78, of Randolph, and Saira Khatoon, 67, of East Brunswick — were charged in federal court in New York.

Prosecutors said the pair operated a social adult day care business with multiple locations in Brooklyn that received more than $38 million from Medicaid reimbursements tied to fraudulent claims.

Authorities also charged physicians Joseph P. Direnzo Jr., 64, of Egg Harbor Township, and Marc A. Matozzo, 56, of Woodbury, with conspiracy to unlawfully distribute controlled substances and two additional distribution charges.

Federal officials said the physicians operated a voicemail refill line that allowed patients to request and receive refills for controlled substances without speaking directly with a doctor. Authorities said some patients who used the refill line later died from overdoses.

Acting Attorney General Todd Blanche called the operation "the greatest whole-of-government effort to combat health care fraud in our Nation's history."