N.J. Man Pleads Guilty to $40M Medicaid Fraud

July 15, 2005

New Jersey Attorney General Peter Harvey announced that the former Chief Financial Officer at the Mt. Carmel Guild Hospital in Essex County has pleaded guilty to submitting fraudulent Medicaid “cost reports” to the federal and state Medicaid Program. As a result of the fraudulent reports, Medicaid overpaid the hospital nearly $40 million over a five-year period.

According to Vaughn McKoy, director, Division of Criminal Justice, and Greta Gooden Brown, Insurance Fraud Prosecutor, John Cardillo, 48, of Berkeley Heights, Union County, pleaded guilty before Essex County Superior Court Judge Michael Casale to a criminal Accusation which charged Health Care Claims Fraud. The guilty plea was entered before Judge Casale on July 13. Cardillo faces up to five years in state prison and a fine of up to $15,000 when sentenced on Dec. 2.

Brown said that Cardillo, formerly employed as the Chief Financial Officer for Mt. Carmel Guild Hospital, 1160 Raymond Boulevard, Newark, admitted that he knowingly submitted false Medicaid “cost reports” to the Medicaid Program from May, 1999 to April, 2003.

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