Local Resident Admits to Scheme to Defraud Hospitals of More Than $800,000
Tuesday, August 12, 2014 • 3:31pm
They were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries where they shared consignment trays with pre-packaged Integra products and surgery-specific products. Integra billed the hospitals and surgery centers for the products used. The product specialists and their supervisors were compensated based on salary, sales target-based commission and bonuses.
Metz admitted to using various fraudulent methods to overcharge hospitals and surgery centers. He said he sometimes charged for a greater quantity or a more expensive product than was actually used, which increased his compensation and improved his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him including Carey, who sometimes employed those methods too.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty pleas. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
U.S. Attorney Paul J. Fishman also reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.