Passaic County Doctor Sentenced in Fraud Scam

February 17, 2005

New Jersey Attorney General Peter Harvey announced that a Passaic County doctor has been sentenced to state prison after pleading guilty to submitting nearly $10,000 in phony health care claims which charged insurance companies for medical services that were never provided to patients. Additionally, the doctor’s former office manager was ordered to pay a $7,500 civil insurance fraud fine.

According to Vaughn McKoy, director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden-Brown, Angel R. Lobo, M.D., 70, Garden City, N.Y., was sentenced by Passaic County Superior Court Judge Miguel de la Carrera to three years in state prison and ordered to pay a $100,000 civil insurance fraud fine pursuant to the Insurance Fraud Prevention Act. Lobo’s office manager, Mercy Lobo (no relation), 59, Clifton, Passaic County, was sentenced to 15 months probation and ordered to pay a $7,500 civil insurance fraud fine. The sentences were imposed by Judge de la Carrera on Feb. 15.

Gooden-Brown noted that Dr. Lobo pleaded guilty before Judge de la Carrera to a charge of Health Care Claims Fraud on Sept. 11, 2003, while Mercy Lobo, pleaded guilty to Health Care Claims Fraud on Oct. 30, 2003. Lobo was licensed by the New Jersey Board of Medical Examiners to practice medicine in 1974. His license has been suspended by the Board.

The investigation by the Office of Insurance Fraud Prosecutor determined that Dr. Lobo operated the Pain Management Clinic located on 14th Street in Paterson. In pleading guilty, Dr. Lobo reportedly admitted that he prepared false patient records to reflect that certain health care services were administered to patients when no such services were provided. The fraudulent billings were submitted to Parkway Insurance Company and/or AIG Claims Services Inc. Lobo also admitted to submitting more than $6,400 in false automobile insurance Personal Injury Protection (PIP) health care claims to Parkway Insurance Company and more than $2,150 to AIG Claims Services Inc. in connection with the treatment of persons purportedly injured in automobile accidents.

Mercy Lobo reportedly admitted that she assisted Dr. Lobo in obtaining, using and paying “runners” to secure patients for the medical practice. (A runner is a person paid by a licensed medical service provider to procure patients for the medical practice so that insurance claims can be submitted for providing treatment.)

Additionally, Lobo admitted instructing patients to sign-in at The Pain Management Clinic on dates that the patient did not appear for treatment.

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