N.J. Physician, Office Manager Fined in Fraud Case

July 22, 2004

New Jersey Division of Criminal Justice Director Vaughn McKoy announced that an Essex County physician and his fiancé/office manager were each ordered to pay a $5,000 civil penalty for reportedly submitting more than $2,600 in fraudulent bills to an insurance carrier for medical services that were never provided.

According to Insurance Fraud Prosecutor Greta Gooden-Brown, Patrick Manze, 57, of Bloomfield, Essex County, and Michelle Maglione, 50, also of Bloomfield, were ordered to pay a $5,000 civil insurance fraud fine. Manze was also sentenced to two years probation and his medical license was suspended for at least one year concurrent to a suspension ordered filed by the New Jersey Board of Medical Examiners. Maglione was ordered to perform 50 hours of community service.

Gooden Brown noted that Manze and Maglione pleaded guilty before Essex County Superior Court Judge Donald Volkert, Jr., on May 24 to charges contained in separate criminal Accusations. Manze pleaded guilty to third degree Health Care Claims Fraud, while Maglione pleaded guilty to Health Care Claims Fraud (4th degree).

In pleading guilty, Maglione reportedly admitted she solicited health insurance information from a friend so that fraudulent insurance claims could be submitted under the pretense that the friend was to become a patient of Dr. Manze.

The investigation by the Division of Criminal Justice – Office of the Insurance Fraud Prosecutor determined that Manze utilized the third party health insurance information solicited by Maglione to submit at least two fraudulent health insurance claims to Horizon Blue Cross/Blue Shield for office examinations and certain diagnostic tests that never occurred. The fraudulent billings totaled $2,625.

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