N.J. Man Pleads Guilty in Health Care Scam

April 19, 2005

New Jersey Division of Criminal Justice Director Vaughn McKoy announced that a Middlesex County man has pleaded guilty to Health Care Claims Fraud for his role in a Medicaid scam.

According to McKoy and Insurance Fraud Prosecutor Greta Gooden-Brown, Andrew Stoveken, 55, of Edison, Middlesex County, owner and operator of Acoustics Hearing Aid Center, Easton Avenue, New Brunswick, Middlesex County, pleaded guilty before Middlesex County Superior Court Judge Frederick DeVesa to a criminal Accusation filed by the Division of Criminal Justice – Office of Insurance Fraud Prosecutor. The Accusation charged Stoveken with Health Care Claims Fraud (3rd degree). When sentenced on July 15, Stoveken faces up to five years in state prison, and a criminal fine of up to $15,000.

At the April 15 guilty plea hearing, Stoveken reportedly admitted that between February 2001 and August 2003, he submitted thousands of dollars in false health care claims to the Medicaid Program representing that he had provided 32 hearing aid batteries to Medicaid recipients in connection with hearing aids.

An investigation by the Division of Criminal Justice – Office of the Insurance Fraud Prosecutor determined that Stoveken provided only 16 batteries to Medicaid patients but billed the Medicaid Program as if he had provided 32 batteries.

In addition, Stoveken admitted that he permitted a person who was not a Medicaid provider to bill the Medicaid Program utilizing Stoveken’s Medicaid provider number. The unauthorized provider reportedly charged more than $126,000 to the Medicaid Program.

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