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For Immediate Release:  
For Further Information Contact:
March 4, 2005

Office of The Attorney General
- Peter C. Harvey, Attorney General
Division of Criminal Justice
- Vaughn L. McKoy, Director

Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

 

Rachel Sacharow
609-984-1936

 

Fugitive Owner of Middlesex County Invalid Coach Transportation Company Sentenced to State Prison for $472,000 Medicaid Fraud

TRENTON - Attorney General Peter C. Harvey announced that the fugitive former owner of a Middlesex County invalid coach transportation company has been sentenced to seven years in state prison for defrauding the Medicaid program of more than $472,000.

According to Vaughn L. McKoy, Director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden-Brown, Genady Chulak, 48, Toronto, Canada, the former owner of GGE Impact Corporation, t/a as Medicall, was sentenced by Middlesex County Superior Court Judge Jane Bruskin Cantor to seven years in state prison and ordered to pay $944,629 in fines and restitution.

Insurance Fraud Prosecutor Gooden-Brown noted that Chulak was convicted on Dec. 14, 2000 by a Middlesex County jury on charges of theft by deception, corporate misconduct, and Medicaid Fraud. After the conviction, Chulak failed to appear for sentencing and Judge Cantor issued a bench warrant for Chulak’s arrest. Chulak was arrested on Dec. 30, 2004, by the Immigration and Naturalization Service as he was attempting to enter the United States from Canada.

During the jury trial, the Insurance Fraud Prosecutor’s Medicaid Fraud Section presented evidence that Chulak, and his wife, Elana Bilenkin, inflated mileage charges for invalid coach transportation services provided to Medicaid patients who needed such services to travel to and from doctor’s offices and other medical service provider’s offices. Chulak was also charged with paying kickbacks to Medicaid patients for using the Medicall vans for transportation. The jury found that Chulak inflated mileage charges so that the Medicaid Program was falsely billed for inflated mileage transportation charges for Medicaid patients.

Chulak’s wife, Elana Bilenkin, 34, also of Old Bridge, pleaded guilty to Medicaid Fraud and was sentenced by Judge Cantor to four years probation and ordered to perform 100 hours of community service.

The investigation of Chulak and the Medicall transportation company began after the Office of Insurance Fraud Prosecutor - Medicaid Fraud Section conducted a search of Medicall’s Corporate Office, formerly located at 287 Kimble Street, Woodbridge, Middlesex County. The Office of the Insurance Fraud Prosecutor also seized certificates of deposit allegedly representing fraudulently obtained Medicaid money and vans that were used to transport patients.

The investigation was conducted by the Division of Criminal Justice - Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Section which investigates and prosecutes criminal Medicaid fraud cases. The Medicaid Program is funded by the state and federal governments and provides health care services and prescription drugs to persons who may not otherwise be able to afford such services and medicines.

Supervising State Investigator Russell Rizzo, former State Investigator David Weinfeldt, and Supervising Deputy Attorney General John Krayniak and Deputy Attorney General Francine Ehrenberg were assigned to the investigation. SDAG Krayniak prosecuted the case.

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