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Press Release

Owner Of Parsippany-Based Diagnostic Testing Facility Sued For Submitting False Claims To Federal Health Care Programs

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

NEWARK, N.J. – A Morris County, New Jersey, man and his diagnostic testing company are being sued by the government for knowingly submitting false claims to Medicare for thousands of diagnostic testing services he did not render, U.S. Attorney Paul J. Fishman announced today.

Vijay Patel, 59, of Parsippany, New Jersey, owner and operator of Mobile Diagnostic Testing of NJ LLC of Parsippany, New Jersey, pleaded guilty Dec.15, 2014, to a criminal information charging him with health care fraud related to this conduct. Today’s civil complaint alleges Vijay Patel violated the False Claims Act.

According to the complaint:

Patel had an associate who was a cardiologist and also a participant in the Medicare program. From around 2009 through 2012, the cardiologist’s Medicare contractor had placed him on so-called “pre-payment review,” which was initiated to ensure that the doctor was submitting claims within established rules and regulations, and which required him to submit documentation, including medical records, to support the services being billed to Medicare. Under pre-payment review, claims for reimbursement that did not have the documentation necessary to support the services being billed are rejected by the Medicare contractor.

From August 2011 through December 2012, Patel and the cardiologist defrauded Medicare by submitting claims to Medicare for diagnostic testing services that the doctor had performed in December 2010 through September 2012, enabling him to evade Medicare’s pre-payment review. Patel submitted the cardiologist’s claims through his company and his brother’s company, Biosound Medical Services Inc. (Biosound), as if Mobile Diagnostic and Biosound had performed the services instead of the doctor. Once Patel received the Medicare reimbursement money paid to the two companies for diagnostic testing services the cardiologist had performed, Patel transferred a portion of the payment to the doctor and kept a substantial portion for himself.  

U.S. Attorney Fishman credited special agents of 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, New York Region, with the investigation leading to the filing of today’s complaint.

The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

The case is captioned United States v. Vijay Patel, et al. (D.N.J.).

Updated December 6, 2016

Press Release Number: 16-344