Second Doctor Indicted in Biodiagnostic Kickback Case

By Ron Shinkman, Editor, Laboratory Industry Report

Another physician has been indicted in the long-running Biodiagnostic Laboratory Services case.

Bernard Greenspan, M.D., a family physician in Northern New Jersey, was indicted on 10 counts by a federal grand jury.

The 78-year-old Greenspan was charged with one count of conspiring to commit violations of the Anti-Kickback Statute; three violations of the Anti-Kickback Statute; three violations of the Federal Travel Act; and three violations of wire fraud.

The indictment alleges that Greenspan received some $200,000 in payments from Biodiagnostic Laboratory between 2006 and 2013, disguised in the form of rental, service agreement, and consulting payments. In exchange, Greenspan allegedly forwarded test business to Biodiagnostic.

“The charges contained in the indictment allege an extremely lucrative pattern of soliciting and accepting illegal payments for referrals to a specific testing lab,” said U.S. Attorney Paul J. Fishman in a statement. “This indictment is part of our continued commitment to prosecute those physicians who sought to enrich themselves through their involvement in the BLS bribery scheme.”

Greenspan is the second physician charged in the case. Bret Ostrager, a New York osteopath, pled guilty late last year to three charges of conspiracy and violations of the Anti-Kickback and Travel Acts after he was indicted last August. He is scheduled to be sentenced on March 29. Ostrager solicited both money and tickets to sporting and music events from Biodiagnostic.

So far, 39 people have pled guilty in connection to the Biodiagnostic case, which may have involved as much as $100 million in improper billings. About $11.5 million has been recovered to date.