A Colts Neck oncologist, with practices in Wall and Howell Townships, pays $1,700,000 to settle federal allegations that he imported unauthorized chemotheraphy drugs and billed Medicare illegally.

Dr. Kenneth D. Nahum, his practice and his wife were identified in the complaint filed by New Jersey U.S. Attorney Paul J. Fishman's office.

The settlement resolves accusations that Nahum's wife, Ann Walsh, ordered medications bearing no approval by the U.S. Food and Drug Administration (FDA) from suppliers outside the United States, between April 1, 2010, and January 31, 2011.

Investigators asserted that doctors in both offices injected the drugs into patients and, and that the offices subsequently submitted Medicare reimbursement claims. Medicare reimburses for drugs that have FDA approval.

"Illegally imported drugs avoid the FDA's rigorous oversight and manufacturing standards," Fishman said in prepared comments.. "Health care providers who import those drugs are exposing their patients to serious risks of harm from contaminated or counterfeit products."

Fishman's office noted that the claims covered in the agreement remain allegations. There has been no determination of liability.

Assistant U.S. Attorneys Sarah Wolfe, Andrew A. Caffey III and Charles Grabow represented the State. Attorneys Michael B. Himmel and Matthew M. Oliver of Roseland, and Salvator T. Alfano of Bloomfield, represented the doctor and his practice.

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