Toms River, Jackson men among 7 charged in $93-million health care fraud scheme
Two men from Toms River and one from Jackson are among 7 charged for their alleged roles in a $93-million dollar health care fraud scheme.
Acting U.S. Attorney Rachael Honig announced charges Thursday charges against Thomas Farese, 78, of Delray Beach, Florida, Pat Truglia, 53, of Parkland, Florida, Domenic J. Gatto Jr. 46, of Palm Beach Gardens, Florida and Nicholas Defonte, 72 and Christopher Cirri, 63, both of Toms River, who were all issued a complaint on conspiracy to commit health care fraud.
Brian Herbstman, 46, of Jackson plead guilty to an information charging him with conspiracy to commit health care fraud and to violate the Anti-Kickback Statute and Sean Hogan, 48, of Old Bridge, plead guilty to an information charging him with conspiracy to engage in money laundering.
Sentencing for Herbstman and Hogan is scheduled for August 31, 2021.
Attorney Honig said that each defendant had a role in this scheme as they offered, paid, solicited and received kickbacks and bribes while in return getting completed doctors orders for durable medical equipment, including orthotic braces and in one case patient referrals for genetic cancer screening tests.
The men involved in the scheme are accused of causing losses to Medicare, TRICARE, and CHAMPVA of nearly $93 million.
Those charged with conspiracy to commit health care fraud face a maximum 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater.
Those charge with conspiracy to violate the federal Anti-Kickback Statute and conspiracy to commit health care fraud face a maximum five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater.
Those charged with conspiracy to transact in criminal proceeds face a maximum 10 years in prison and a fine of $250,000 or twice the gross profit or loss caused by the offense, whichever is greater.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman and Ryan L. O’Neill of the Opioid Abuse Prevention & Enforcement and Health Care Fraud Units in Newark, Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark, and Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section.
Herbstman: Robert G. Stahl Esq., Westfield, New Jersey
Hogan: Christopher D. Adams Esq., Red Bank, New Jersey
Gatto: Seth Levine Esq., Newton, New Jersey; Paul Murphy Esq., New York
Cirri: Joseph Rubino Esq., West Orange, New Jersey
Defonte: Dan Holzapfel Esq., Cranford, New Jersey