New Jersey Physician and Medical Practice Agree to Pay

New Jersey Physician and Medical Practice Agree to Pay

New Jersey Physician and Medical Practice Agree to Pay $106,255 to Resolve False Claims Act Allegations

NEWARK, N.J (STL.News) A New Jersey physician and his medical practice will pay $106,255 to resolve allegations that they violated the False Claims Act by making false representations in connection with submissions to the Centers for Medicare & Medicaid Services, Acting U.S. Attorney Rachael A. Honig announced today.

According to the contentions of the United States contained in the settlement agreement:

From Jan. 1, 2016, through March 31, 2020, Vedat Obuz and his medical practice, Lotus Clinics P.C./Lotus Family Medicine, falsely billed certain medical procedures to Medicaid and Medicare by representing that the procedures had been performed by Obuz when, in fact, those procedures were performed by nurse practitioners.

The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Kathleen Menold.  The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery.  Ms. Menold will receive 20 percent from the federal share of the settlement.

The government’s pursuit of this lawsuit illustrates its efforts to combat healthcare fraud. 

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