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For Immediate Release:  
For Further Information Contact:
April 18, 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

 

Middlesex County Man Pleads Guilty to Health Care Claims Fraud in Connection with Medicaid Scam

TRENTON - Division of Criminal Justice Director Vaughn L. McKoy announced that a Middlesex County man has pleaded guilty to Health Care Claims Fraud for his role in a Medicaid scam. The Medicaid Program, which is funded by the state and federal governments, provides health care services and prescription drugs to persons who may not otherwise be able to afford such services and medicines. The State of New Jersey administers the Medicaid Program through the Division of Medical Assistance and Health Services and, through the Office of Insurance Fraud Prosecutor’s Medicaid Fraud Section, which investigates both criminal and civil Medicaid fraud and abuse in that program.

According to Director McKoy and Insurance Fraud Prosecutor Greta Gooden-Brown, Andrew Stoveken, 55, Westover Way, Edison, Middlesex County, owner and operator of Acoustics Hearing Aid Center, Easton Avenue, New Brunswick, Middlesex County, pleaded guilty before Middlesex County Superior Court Judge Frederick P. DeVesa to a criminal Accusation filed by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor. The Accusation charged Stoveken with Health Care Claims Fraud (3rd degree). When sentenced on July 15, Stoveken faces up to five years in state prison, and a criminal fine of up to $15,000.

At the April 15 guilty plea hearing, Stoveken admitted that between February 2001 and August 2003, he submitted thousands of dollars in false health care claims to the Medicaid Program representing that he had provided 32 hearing aid batteries to Medicaid recipients in connection with hearing aids. An investigation by the Division of Criminal Justice - Office of the Insurance Fraud Prosecutor determined that Stoveken provided only 16 batteries to Medicaid patients but billed the Medicaid Program as if he had provided 32 batteries. In addition, Stoveken admitted that he permitted a person who was not a Medicaid provider to bill the Medicaid Program utilizing Stoveken’s Medicaid provider number. The unauthorized provider charged more than $126,000 to the Medicaid Program.

State Investigator Christine Barclay and Deputy Attorney General Erik W. Daab were assigned to the investigation into this case. DAG Daab represented the Division of Criminal Justice at the guilty plea hearing.

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