Bordentown Doc Sentenced to 15 Months in Prison in Health Care Kick-Back Scheme

CAMDEN, NJ — A doctor from Bordentown with an office in Hamilton will serve 15 months in prison and three years of supervised released for accepting kickbacks and defrauding the New Jersey state health benefits programs.

According to the U.S. Attorney for the District of New Jersey, Dr. Daniel Oswari, 51, of Bordentown, played a role in two separate health care fraud conspiracies linked to the kickback scheme for referring laboratory work.

In addition to the prison sentence, Oswari must pay restitution of $1.9 million and forfeiture of $54,000.

Oswari was affiliated with the Family Practice Associates at Hamilton located on Whitehorse Avenue, according to MD.com.

Oswari pleaded guilty in December 2019 before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with conspiracy to commit health care fraud and wire fraud and conspiracy to violate the Anti-Kickback Statute and the Travel Act.

According to court documents, Oswari participated in a conspiracy between January 2014 and April 2016 that "targeted patients with these insurance plans that provided coverage for the compound medications, particularly New Jersey state and local government and education employees."**BULLSEYE

Typically, these compound medications are not covered by insurance until other FDA-approved medications are considered. The consipirators, including Oswari, discovered that certain insurance plans paid for certain prescription compound medications such as vitamins and pain creams from a Louisiana pharmacy.

The U.S. Attorney says that "Oswari and members of his staff tried to persuade patients to receive the prescription compound medications, even if the patients did not have a medical necessity for the medications."

The Pharmacy Benefits Administrator paid two pharmacies approximately $1.9 million for 285 prescriptions for compounded medications signed by Oswari. The doctor then received cash kickbacks for these prescriptions. **STANDARD

Additionally, Oswari also pleaded guilty to a separate conspiracy to take kickbacks for referring laboratory work and signing prescriptions.

The U.S. Attorney says Oswari had a laboratory hire his medical assistant as a phlebotomist, but her salary was paid for by the laboratory for two years.

In this scheme, Oswari would refer his blood and urine samples to the laboratory for testing. This lab work was insured by Medicare, New Jersey Medicaid, and other insurance companies.