Florida doctor in NJ political corruption scandal to fight new Medicare fraud charges: lawyer

[April 16, 2015]  By Zachary Fagenson

WEST PALM BEACH, Fla. (Reuters) - A Florida ophthalmologist accused of showering New Jersey Senator Bob Menendez with gifts in exchange for help on Medicare disputes plans to fight new federal charges of fraud related to millions in Medicare payments, his attorney said on Wednesday.

An arraignment hearing in the Medicare fraud case was continued to Thursday after Salomon Melgen appeared briefly in Florida federal court on Wednesday morning wearing handcuffs and disheveled in a blue jumpsuit.

Melgen, who has pleaded not guilty in the Menendez case, now also faces 76 counts of Medicare fraud and falsifying medical records.

"We are convinced of his innocence and look forward to having our day in court," said his attorney, Maria Dominguez.

Melgen was arrested and indicted on Tuesday for Medicare fraud by the U.S. Attorney's office in Miami. The 61-year-old North Palm Beach ophthalmologist was expected to remain in jail on Wednesday.

Melgen's attorney said in court that he is in poor health and later told reporters that he has prostate cancer.

Melgen faces 46 counts of healthcare fraud, as well as 19 counts of fraudulent claims, and 11 counts of making false statements relating to health care, prosecutors said in a statement.

In an indictment unsealed on Wednesday, prosecutors said Melgen's high-volume practice saw as many as 100 patients in single day.

Most left with a diagnosis of age-related macular degeneration, which he had staff pre-write onto their records before their examinations, the indictment claimed.

Melgen ordered unnecessary tests and procedures and falsified records, the indictment said. Medicare was billed $144,000 for examinations, tests, and procedures supposedly performed on both eyes of one patient who had a prosthetic right eye.

The indictment said his clinic billed Medicare more than $190 million between January 2008 and December 2013, and was paid more than $105 million, much of based on fraudulent claims.

Menendez and Melgen, who are close friends, were both charged in an alleged political corruption conspiracy earlier this month in New Jersey.

Menendez, a Democrat from New Jersey and a leading foreign policy voice in Congress, pleaded not guilty to corruption charges.

He is charged with accepting up to $1 million worth of gifts from Melgen in exchange for using the power of his office to influence Melgen's Medicare disputes. He was released without bail.

Melgen was released on a $1.5 million bond in the Menendez case.

(Writing by David Adams; Editing by Letitia Stein, Lisa Lambert and Bill Trott)

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