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New Jersey clinical lab at center of huge physician bribery

Staff writer |
Biodiagnostic Laboratory Services (BLS), the Parsippany, N.J. clinical lab was at the center of a long-running and elaborate test referral scheme.

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The scheme was operated by its president and numerous associates, pleaded guilty and was sentenced in federal court, U.S. Attorney Paul J. Fishman announced.

BLS pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging it with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of conspiracy to commit money laundering.

Following the plea, BLS was sentenced by Judge Chesler. The company, which is no longer operational, must forfeit all of its assets.

The investigation has resulted in 40 guilty pleas – 26 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.

It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture.

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