Former President of N.J. Assoc. of Acupuncturists Pleads Guilty to Health Care Claims Fraud

June 23, 2004

Division of Criminal Justice Director Vaughn McKoy announced that the former president of the New Jersey Association of Acupuncturists has pleaded guilty to health care claims fraud for billing two insurance companies for acupuncture treatments he never performed.

According to Insurance Fraud Prosecutor Greta Gooden-Brown, Andrew Rosenfarb, 32, of Westfield, Union County, pleaded guilty before Union County Superior Court Judge Walter Barisonek to an Accusation filed by the Division of Criminal Justice – Office of Insurance Fraud Prosecutor, charging him with health care claims fraud (3rd degree).

When sentenced on Aug. 20, Rosenfarb faces up to five years in state prison and a fine of up to $15,000, in addition to civil insurance fraud fines pursuant to the civil Insurance Fraud Prevention Act. Rosenfarb’s case will also be referred to the Professional Board that regulates acupuncturists in New Jersey.

Rosenfarb was charged pursuant to the State’s Health Care Claims Fraud statute. The Health Care Claims Fraud statute became effective on Jan. 15, 1998 and was passed to “enable more efficient prosecution of criminally culpable persons who knowingly, or with criminal recklessness, submit false or fraudulent claims for payment or reimbursement of health care services.”

At the guilty plea hearing, Rosenfarb reportedly admitted that between Dec. 12, 2000 and Nov. 30, 2001, he submitted Personal Injury Protection health insurance claims pertaining to two patients for acupuncture services purportedly rendered on more than two dozen occasions. He submitted these claims to the Encompass Insurance Company and the State Farm Insurance Company.

An investigation by the Division of Criminal Justice – Office of Insurance Fraud Prosecutor revealed that Rosenfarb provided no acupuncture services on those dates.

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