CAMDEN, NJ—The owners of a marketing and sales company admitted paying thousands of dollars in cash bribes to a New Jersey physician in return for patient referrals to their clients, U.S. Attorney Paul J. Fishman announced.

Daniel Gilman, 62, of Ocean Grove, New Jersey, and Kenneth Robberson, 46, of Wall, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to separate informations charging them each with one count of conspiracy to pay kickbacks.

According to documents filed in this case and statements made in court:

Gilman and Robberson were principles of Promed Practice Consultants LLC (“Promed”), a company specializing in marketing and sales services for testing laboratories. As identified in the information, “Company 1,” a blood testing laboratory, and “Company 2,” a DNA testing laboratory, were two of Promed’s clients. Gilman and Robberson received monthly commission checks from Company 1 and Company 2 for referrals, which were equal to 10 percent of the reimbursements paid to the companies by various payors, including Medicare.

From March 2014 through May 2015, Gilman and Robberson paid a physician, identified in the information as “CC-1,” thousands of dollars in return for patient lab referrals to Company 1 and Company 2. After receiving the commission checks from Company 1 and Company 2, Gilman and Robberson would identify CC-1’s patient referrals to those companies and pay CC-1 corresponding kickbacks in cash. Altogether, Gilman and Robberson paid CC-1 approximately $25,000 in cash bribes.

Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.

The kickback conspiracy charge to which Gilman and Robberson pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 11, 2016.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s pleas.

The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.