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New Jersey medical facility to pay $3.6 million for false Medicare claims

By Shaun Zinck | Jun 1, 2015

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A New Jersey medical facility will pay $3.6 million to settlement a federal lawsuit over allegations that it billed for tests that weren't medically necessary, said U.S. Attorney Paul Fishman.

Garden State Cardiovascular Specialists P.C., which operated several facilities in the sate under the name NJ MedCare and NJ Heart, allegedly sent in Medicare claims for certain cardiology diagnostic tests and procedures, external counterpulsation and cardiac catheterizations, which weren't necessary for the patients, Fishman said. The company's principals, Jasjit Walia and Preet Randhawa were also named in the lawsuit.

Cheryl Mazurek was the whistle-blower who informed authorities of the illegal activity. The U.S. Department of Justice said Mazurek will receive about $648,000 as part of the settlement. The lawsuit was filed under the whistle-blower provisions of the False Claims Act.

Agents from the U.S. Department of Health and Human Services Office of Inspector General, along with Special Agent in Charge Scott Lampert, conducted the investigation into Garden State.

Fishman created the Health Care and Government Fraud Unit at the U.S. Attorney's Office in New Jersey shortly after taking office. The office has brought in about $635 million since being created in 2010 in health care and government fraud settlements, judgments, fines and restitutions.

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