Several New Jersey doctors have been indicted in connection with the pay-for-patients healthcare scam that state investigators have dubbed Operation RayScam.
The medical practitioners were indicted for allegedly referring patients to imaging center chain Diagnostic Imaging Affiliates (DIA) in exchange for cash bribes and other kickbacks, according to a June 3 news release by the New Jersey Office of the Attorney General.
The doctors are being charged with taking kickbacks from Rehan Zuberi, the operator of Diagnostic Imaging Affiliates. Zuberi pleaded guilty in May to charges that he led a criminal enterprise that paid several million dollars to doctors from 2007 to 2014 in exchange for referrals that generated $8 million in Medicare payments. He was sentenced to 10 years in prison.
The physicians indicted in connection with Operation RayScam are as follows:
- Dr. John Fritz, a family physician in Jersey City, who allegedly referred 4,500 scans to Zuberi's facilities in exchange for about $500,000 in kickbacks, according to authorities. At his peak, Fritz was allegedly receiving $6,000 to $7,000 per month from Zuberi, investigators believe.
- Dr. Devarajan Iyengar, an oncologist in Livingston, who allegedly received about $75,000 in kickbacks from 2007 to 2012. The money was disguised as payroll payments, according to state authorities.
- Dr. William M. Steck Sr., an ob/gyn in West Orange, who allegedly received about $55,000 for referring hundreds of scans to DIA facilities, for which he received payments from Zuberi shell companies, the indictment said.
- Alan P. Epstein, DC, a chiropractor from Manalapan, who allegedly referred more than 200 scans to Zuberi-controlled facilities, for which he was paid for architectural services and permits meant to expand his practice.
