Owner Of Physical Rehabilitation Company Pleads Guilty To Submitting More Than $20 Million In Fraudulent Medical Bills To Health Benefit Programs

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), Naomi Gruchacz, and Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the filing of an Information charging NOSSON SKLAR, a/k/a “Nathan Sklar,” with engaging in a scheme to defraud health benefit programs through the submission of more than $20 million in fraudulent claims.  SKLAR also entered a guilty plea to the Information in a proceeding today before U.S. District Judge Nelson S. Román, to whom the case has been assigned.

“As he admitted today in court, Nosson Sklar spent years submitting millions of dollars in fraudulent medical claims to various health benefit programs,” said U.S. Attorney Jay Clayton.  “New Yorkers rely on honest billing to access care, and our Office will hold accountable those who drive up costs through criminal deception.”

“The defendant in this case brazenly submitted false claims to receive funds for rehabilitation services that were never provided under a doctor’s care,” said HHS-OIG Special Agent in Charge Naomi Gruchacz.  “HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”

“Nosson Sklar defrauded health care programs of more than $20 million by submitting illegitimate claims with forged unauthorized physician signatures,” said FBI Assistant Director in Charge Christopher G. Raia.  “Sklar, in his capacity as owner and CEO, violated the integrity of his company and a doctor at the expense of our healthcare system.  The FBI will always hold accountable anyone who abuses their position to bill for ghost services just to turn a profit.”

According to the Information, the Complaint previously filed against SKLAR, and other filings and statements made in court:        

SKLAR was the owner and chief executive officer of a company that operated a series of physical rehabilitation facilities around New York City (the “Rehabilitation Company”).  Between at least January 2020 and in or about July 2024, SKLAR submitted or caused others to submit more than $20 million in claims for medical services to various health care benefit programs, asserting that those services were rendered by a physician who worked with the Rehabilitation Company (“Victim-1”).  But that was false.  Victim-1 did not provide those services, did not work with the Rehabilitation Company during that time, and did not authorize SKLAR to submit bills in his name.

In or about July 2024, Victim-1 spoke with SKLAR on at least two occasions about the fraudulent bills.  During those conversations, SKLAR admitted that he had committed “fraud” by billing under Victim-1’s name, and that he did it “because [of] the money.”

Between at least in or about January 2020 and in or about July 2024, SKLAR caused more than $20 million in claims to be submitted to three separate health benefit programs (the “Health Plans”), which listed Victim-1 as having been the rendering provider for the Rehabilitation Company.  Approximately $12.4 million of those claims were eventually paid by the Health Plans.

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SKLAR, 56, of New York, New York, pled guilty to one count of health care fraud, which carries a maximum sentence of 10 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Clayton praised the investigative work of HHS-OIG and FBI.

This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jorja N. Knauer and David A. Markewitz are in charge of the prosecution.