Imaging center owner Rehan Zuberi accused of fraud, bribery in scheme to defraud Medicaid
EDISON - The owner of several New Jersey X-ray centers is accused of ripping off Medicaid to fund a lavish lifestyle.
Investigators uncovered a scheme in which Rehan Zuberi, the owner of 14 diagnostic imaging centers used by thousands of patients, bribed doctors to send patients his way.
Zuberi, 45, owns a mansion in Boonton and a handful of luxury cars, including a Lamborghini, according to former employee Gina Coscia. After an anonymous tip, investigators thought Zuberi's life was a little extravagant.
READ MORE: New Jersey Crime Stories
Zuberi owns a network of centers including American Imaging and Medical and Molecular Imaging. He's accused of paying kickbacks to doctors in exchange for patient referrals and defrauding Medicaid by up to $8 million.
"We can trace, that we know of, $300,000 in kickbacks," says acting Attorney General John Hoffman. "But that number will probably grow."
This isn't the first time Zuberi has been in trouble. He was sentenced to prison 16 years ago for the very same crime. He served less than a year and reopened new businesses by concealing his name.
Coscia says she and dozens of others are out of a job. "Today was payday and we hear the payroll guy is in jail and our head office is closed. Now, over 100 of us are without a paycheck," she says.
According to Hoffman, no doctors have been arrested, but the investigation is ongoing.