Doctor from Franklin Lakes Pleads Guilty to Billing Medicare, Medicaid for Phantom Physical Therapy Services

A doctor from Franklin Lakes with offices in Newark, Union City, Paterson and Passaic admitted his role in a three-year scheme to bill Medicare for services that were not provided and services provided by unlicensed and unsupervised providers, U.S. Attorney Paul J. Fishman said.

Benjamin Sabido, 62, pleaded guilty in Newark federal court to an information charging him with health care fraud after court documents say he received $237,182 from Medicare and Medicaid based upon fraudulent claims. Sabido did so by instructing his staff to submit bills for physical therapy services that were not provided from at least December 2006 through April 2010.

Sabido also authorized and encouraged unqualified staff members to provide physical therapy services, including electronic stimulation, message and other therapeutic services, according to Fishman. What is more, Sabido did not employ any licensed physical therapists, nor anyone otherwise qualified to provide physical therapy services during the time period of the scheme.

The settlement also alleges that from January 2006 through December 2010, Sabido submitted to Medicare claims for nerve conduction studies for which patient charts do not establish that the services were medically necessary or, in some cases, even rendered, Hoffman said. Except as admitted in the plea agreement, the claims settled by the civil settlement agreement are allegations only, and there has been no determination of liability as to those claims.

The count of health fraud to which Sabido pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense, Fishman said. Sabido will also pay $700,545, plus interest, to resolve allegations arising from his submission of claims for physical therapy and nerve conduction studies.

Sentencing is scheduled for May 14.