Corporate Compliance

New Jersey physician and co-conspirators charged for $1.8M Medicaid fraud

Compliance Monitor, September 15, 2010

An FBI-led investigation led to a criminal complaint that alleges a New Jersey doctor and four others participated in a $1.8M Medicare fraud scheme involving the use of fake physicians, according to a Department of Justice (DOJ) press release.

Yousuf Masood, 46, and his wife Maruk, 42, allegedly hired unlicensed individuals to act as physicians and treat patients at their Elizabeth, NJ office. Yousef Masood paid the fraudulent physicians $17 an hour to treat patients and bill Medicaid as if Masood provided the patient services. Medicaid received numerous bills for services purportedly rendered by Masood in New Jersey, while he was actually in the Dominican Republic, Europe, or Bermuda, according to the DOJ.

The four fake physicians face a maximum penalty of 10 years in prison and a fine of $250,000. The Masoods face a 10 year prison sentence and $250,000 fine. They will also face a count of money laundering.

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