A former sales representative from Monmouth County faces up to five years in prison for his part in a biomedical kickback scheme.


William Dailey, 41, Wall Township, and Peter Breihof, 42, of Nutley, admitted bribing doctors to perform unnecessary tests and send blood samples to the firm that employed them, Biodiagnostic Laboratory Services LLC (BLS) of Parsippany.

This past April 9, federal agents arrested the brothers who operated the company and an employee who also ran a company they're accused of using to funnel bribe money to physicians. Investigators say the scheme resulted in tens of millions of dollars through payments from private health insurors and Medicare since 2006.

According to New Jersey U.S. Attorney Paul Fishman's office, doctors were paid thousands each month by BLS for space in medical offices that the company didn't need, to perform routine blood testing that had little dollar value. Dailey and Breihof admitted using bogus lease and service agreements to bribe doctors into sending samples to the company, and paid many of them fees per test to induce extra, needless procedures.

Dailey and Breihof also risk fines as high as $250,000, or twice the gross gain or loss in the scam. Dailey is required to forfeit $558,405. Breihof agreed to give up $1,179,556.

Their sentencings are scheduled for September 19.