Two West Orange Doctors Indicted in Kickback Scheme

(Editor's note: the name of one of the individuals involved in this article has been removed due to their record having been expunged.)

A pair of West Orange doctors were among five medical practitioners indicted for a patient referral kickback scheme, authorities said.

The five New Jersey medical practitioners were indicted for referring patients to Diagnostic Imaging Affiliates, a medical imaging company, in exchange for cash bribes and other kickbacks, according to the New Jersey Attorney General’s Office.

Four doctors and one chiropractor were indicted on Wednesday morning and were accused of taking the bribes from Rehan Zuberi, 46, of Boonton. According to the Attorney General’s Office, Zuberi pleaded guilty last month to leading a criminal enterprise that paid millions of dollars in bribes and kickbacks to numerous doctors between 2008 and 2014.

The doctor whose record was expunged was among the five indicted Wednesday. He allegedly referred thousands of scans to Zuberi’s imaging centers between 2009 and 2013, receiving $130,000, authorities said.

He received the kickbacks from Zuberi in a number of ways, including checks and rental agreements, which provided Zuberi pay to rent space at his medical offices. However, the sham rental arrangement was contrived and hid the kickbacks, according to the attorney general.

The doctor was arrested for his role in the scheme in October 2014. He is facing charges of second-degree health care claims fraud, second-degree commercial bribery and third-degree running. His record was later expunged of these charges.

Dr. William M. Steck, Sr., 70, also of West Orange, allegedly referred hundreds of scans to imaging centers, for which he received $55,000, authorities said. Steck was also arrested for his role in the scheme in October 2014 and faces charges of second-degree health care claims fraud, third-degree commercial bribery and third-degree running.

“A doctor’s duty is to his patients’ care and well-being, not to his personal wealth,” Acting Attorney General Hoffman said in a release. “By allegedly selling their medical opinion for kickbacks, the five medical practitioners indicted today have abandoned that duty, thus breaking the law and the trust of those who sought their advice.”

The other New Jersey medical practitioners indicted include Dr. John Fritz, 47, of Jersey City; Dr. Davarajan Iyengar, 61, of Livingston; and Dr. Alan P. Epstein, 46, of Manalapan.