Chiropractor and Assistant Charged in Health Care Fraud Scheme

Dr. Neil H. Hollander was charged today by Indictment with health care fraud, mail fraud, and making false statements in a health care investigation, announced United States Attorney Michael L. Levy. The indictment alleges that Hollander was a chiropractor who maintained an office and treated patients at the Hollander Chiropractic Center located at 10014 Sandmeyer Lane in Philadelphia from approximately 1992 until on or about January 27, 2006. In addition to seeing patients in his office, it is alleged that Dr. Hollander saw some patients in a van known as Hollander Mobile Chiropractic Services that traveled to various locations in the vicinity of Philadelphia, Pennsylvania. The indictment alleges that between 2002 and 2006, Hollander billed Independence Blue Cross (“IBC”) approximately $914,503.19 for chiropractic treatments that he had not actually rendered to the insured patients, for which IBC paid approximately $304,096.28. The indictment also charges that in 2005, when IBC requested patient files from Hollander, Hollander and his assistant, Lidia Garcia, created false documents to submit to IBC in an effort to justify the fraudulent billings that had been submitted. Both Hollander and Garcia are charged with making false statements in a health care matter for their alleged roles in the creation of these false records.

The indictment further charges Garcia with health care fraud and aggravated identity theft. These charges are based on the allegation that Garcia operated a company called Advanced Diagnostic Alternatives, through which Garcia provided diagnostic tests to patients of Dr. Hollander and another chiropractor. In billing IBC for tests, Garcia allegedly represented that evaluation of the tests was performed by a neurologist who was a participating provider in the IBC network, when the evaluations were actually performed by a different neurologist who was not a member of the IBC network. It is alleged that the neurologist who was not a member of the IBC network charged Garcia only $55 to review the diagnostic tests, while the participating IBC provider charged Garcia more than twice that amount for the same service. By falsely claiming in her bills to IBC that a participating provider was reviewing the diagnostic tests, it is alleged that Garcia was able to profit from the difference in charges by these two neurologists.

INFORMATION REGARDING THE DEFENDANTS

If convicted, Hollander faces a substantial term of imprisonment, a fine of $14,000,000, and five years’ supervised release. Hollander may also be required to pay restitution of as much as $914,503.19.

If convicted, Garcia faces a substantial term of imprisonment, including a mandatory two years’ imprisonment, a fine of $1,850,000, and five years’ supervised release. Garcia may be ordered to pay restitution of as much as $174,960.

The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Emily McKillip.