Doctor Sentenced to Two Years for Health Care Fraud

A doctor from North Caldwell was sentenced in Newark federal court Monday to two years in prison for health care fraud. 

Dr. , 63, pleaded guilty in December to defrauding Blue Cross Blue Shield of more than $725,000 by filing false claims for services that were not rendered and office visits that never occurred, according to a release issued by the office of U.S. Attorney Paul J. Fishman.

The sentence was imposed by U.S. District Judge Ester Salas, who previously presided over the guilty plea.

Stein was the owner of Randolph Otolaryngology P.C., a medical treatment facility based in Randolph, from August 2004 to September 2010. Before the fraudulent claims were billed, Stein had billed Blue Cross Blue Shield for treating a patient with the initials J.F. for nasal problems.

Stein admitted he submitted claims for approximately 900 nasal endoscopies he purportedly conducted on the patient, when only a few were actually performed. Stein also admitted he filed fraudulent claims for office visits and medical procedures that purportedly occurred while J.F. was out of the country on vacation.

As a result of the false claims, Stein received $725,156.45 from Blue Cross Blue Shield. Stein agreed to pay restitution and forfeiture in the same amount under the plea agreement. 

In addition to the prison term, Judge Salas sentenced Stein to three years of supervised release. He has also surrendered his medical license.