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Press Release

Morris County, New Jersey, Doctor Admits Illegally Prescribing Oxycodone And Defrauding Medicare, Medicaid Out Of $30,000

For Immediate Release
U.S. Attorney's Office, District of New Jersey

NEWARK, N.J. – A Long Valley, New Jersey, man today admitted writing illegal prescriptions for oxycodone and conspiring to bill Medicare and Medicaid for certain allergy tests without performing the required patient examinations, U.S. Attorney Craig Carpenito announced.

    Jose Leyson, 71, of Long Valley, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of illegally distributing oxycodone and one count of conspiracy to commit health care fraud. 

According to documents filed in this case and statements made in court: 

Leyson was a physician specializing in urology who owned and served as the medical director of a clinic in Newark. The medical clinic purportedly provided various services to patients, including pain management and allergy testing.

On four occasions between Nov. 11, 2013 and Jan. 6, 2014, Leyson illegally sold prescriptions for oxycodone to a confidential source acting at law enforcement’s direction. In each instance, Leyson wrote these prescriptions without performing any medical treatment or patient examination and in exchange for cash payments or access to welfare benefits. In total, Leyson provided the confidential source with oxycodone 30 mg prescriptions for at least 420 pills.

In addition, from April 2010 to January 2013, Leyson and others at the medical clinic conspired to submit phony bills to Medicare and Medicaid for certain allergy tests that Leyson prescribed without examining the patients to determine if the tests were medically necessary. As a result, Leyson and the other conspirators were able to fraudulently obtain at least $30,000 from Medicare and Medicaid.

The unlawful distribution of oxycodone charge carries a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The healthcare fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Leyson’s sentencing is scheduled for April 26, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Criminal Division in Newark.

Defense counsel: John Roberts Esq., Chatham, New Jersey.

Updated January 18, 2018

Prescription Drugs
Health Care Fraud
Press Release Number: 18-019