A former doctor from Jackson who lost her medical license in 1996 faces trial for allegedly scamming an insurance company out of more than $172,000 for nonexistent treatments to patients.

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Lynda Stambaugh-Lupo, 52, and her husband Michael Lupo, 61, were indicted on second-degree counts of conspiracy, health-care claims fraud and theft by deception, according to information from the office of acting New Jersey Attorney General John J. Hoffman.

Mrs. Lupo is additionally charged with practice of medicine by an unlicensed person, a third-degree count.

Stambaugh-Lupo is a former osteopath who surrendered her license 19 years ago following an arrest for obtaining a controlled dangerous substance by fraud, authorities said.

The Office of Insurance Fraud Prosecutor (OFIP) alleges that between 2012 and 2014, she and her husband billed Anthem Blue Cross-Blue Shield for lymphatic therapy related to two patients, that was never performed.

Billing was sent through their company, In Home Lymphatic Care LLC, with her husband acting as office manager and signatory to the claims, authorities said.

She is also accused of representing herself to another patient and an insuror, in person, by phone and by mail, as a medical doctor in 2010 and 2011, during the course of recommending a treatment regimen.

Convictions for second-degree charges carry sentences as high as 10 years in state prison and fines of up to $150,000. Findings of guilt on third-degree counts translate to maximum five-year sentences and $15,000 fines.

New Jersey maintains an active website in which fraud suspicions can be sent anonymously. The toll-free hotline is 877-55-FRAUD (877-553-7283). State regulations permit rewards for tips that lead to fraud arests, prosecutions and convictions.

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