Westfield Doctor Allegedly Submitted Bogus Claims to Federal Health Care Programs

Westfield, NJ -- The U.S. Attorney’s Office has filed a lawsuit against a Westfield doctor and his Westfield-based medical practice companies for knowingly submitting millions of dollars in false claims to Medicare and Medicaid for thousands of diagnostic tests that were never performed and for physical therapy services performed by unqualified personnel, U.S. Attorney Paul J. Fishman announced.

The civil complaint, filed today in Newark federal court, charges Dr. Labib E. Riachi, 47, of Westfield and two companies that he owns and operates, Riachi, Inc. and Center for Advanced Pelvic Surgery, LLC, both based in Westfield, with violating the False Claims Act, among other illegal conduct.

Riachi routinely billed for medical tests that were never performed and also submitted claims to Medicare for physical therapy services that should not have been paid because they were not performed by a qualified therapist, according to the complaint.

“This scheme resulted in millions of dollars of reimbursement that would not have been paid but for the defendants’ misconduct,” Fishman said.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, and the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the complaint.

Since 2010, the attorney’s office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.