New Jersey doctor allegedly filed millions in false Medicare claims, US Attorney's Office says

The U.S. Attorney's office has filed a civil suit against a prominent New Jersey doctor for allegedly causing the submission of millions of dollars in fraudulent claims to Medicare and Medicaid, among other illegal conduct, in violation of the False Claims Act.

The suit, which was filed Wednesday in Newark federal court, charged Dr. Labib E. Riachi, along with two companies he owns and operates, for billing Medicare and Medicaid for "thousands" of diagnostic tests that were never actually done, and for physical therapy services that were performed by unlicensed, unqualified therapists, the U.S. Attorney's office said.

Riachi's two companies Riachi and the Center for Advanced Pelvic Surgery are both based in Westfield.

"For many years, Dr. Labib E. Riachi was one of the nation's most prolific Medicare billers of anorectal manometry, an invasive diagnostic test ... He was also among the top Medicare billers for a certain type of electromyography, another diagnostic test. Most of these tests, however, were never performed," according to the complaint.

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It also goes on to allege that Raichi's staff were unqualified and not licensed to perform physical therapy. According to U.S. Attorney's office, Medicare only covers services performed by a licensed therapist, so any claims resulting from these therapies should not have been paid out. It also said that throughout the "relevant period", Riachi didn't employ a single licensed physical therapist.

"After his patients received this 'treatment', Riachi would sign the patient's chart as if a qualified therapist had performed the therapy and the diagnostic tests had actually been performed. Based on this pattern, Riachi, through his practice entities -- defendants Riachi, Inc. and Center for Advanced Pelvic Surgery, LLC -- caused to be submitted thousands of false claims for reimbursement to Medicare and Medicaid. This scheme resulted in millions of dollars of reimbursement that would not have been paid but for the defendants' misconduct," according to the complaint.

Authorities said the total damages are not yet public. Right now, "millions" is the only public description for the amount of allegedly fraudulent reimbursements, and the U.S. Attorney's office will be pursuing financial damages and a civil fine for each penalty, said Will Skaggs, Deputy Public Affairs Officer for the United States Attorney's Office New Jersey District office.

According to the complaint, they have also requested a jury trial.

Twitter: @BethJSanborn