East Setauket Man Stole Over $400K In Insurance Fraud Scheme: DA

A former health care worker was indicted on 70 counts for allegedly

receiving more than $400,000 through a health care insurance fraud scheme, Suffolk County prosecutors said.

Joseph Basile, 50, of East Setauket, who was the office manager

for a private health care practice by a colorectal surgeon in Port Jefferson,

allegedly filed insurance claims to Empire BlueCross BlueShield in excess of $3.8 million on behalf of himself and others listing his former employer as the provider from January 2014 through July 2016, prosecutors said.

Basile then allegedly forged the signature of his former employer and deposited the checks into his own account, receiving in total $400,000 in payments, prosecutors said.

Prosecutors said Basile's former employer is now employed by John T. Mather Hospital in an administrative role and is no longer seeing patients on a clinical basis.

As part of the scheme, Basile also allegedly filed fraudulent insurance claims on behalf of another individual whose health care is provided through Teamsters Local 1205’s welfare fund. Basile allegedly stole more than $3,000 from the fund by filing false health care insurance claims, prosecutors said.

Basile was arraigned on the indictment today by Suffolk County Court Judge Anthony Senft Jr. and was released on $5,000 bond, which he previously posted. He is due back in court on March 12.

He was charged with first-degree insurance fraud, three counts of second-degree healthcare fraud, two counts of second-degree grand larceny, third-degree healthcare fraud, third-degree grand larceny, first-degree scheme to defraud, and 60 counts of second-degree criminal possession of a forged instrument - all felonies.

If convicted of the top count, Basile faces a maximum sentence of eight and one-third to 25 years in prison.