Medicare Compliance & Reimbursement

ENFORCEMENT:

Transport Owner Sidelined 7 Years

Getaway effort by provider no match for law's long arm.

Providers caught in the crosshairs of a fraud investigation may face unusually harsh sentencing if they fail to comply with legal requests.
 
Case in point: Genady Chulak of Toronto, Canada, who was the former owner of a Middlesex County, NJ-based invalid coach transportation company, was convicted in 2000 of defrauding more than $472,000 from Medicaid. Chulak failed to appear in court for sentencing and remained a fugitive for four years, New Jersey Attorney General Peter C. Harvey said March 4.

When he attempted to enter the United States from Canada he was arrested, sentenced to seven years in state prison and ordered to pay $944,629 - double fines and restitution.

Chulak and his wife Elana Bilenkin allegedly inflated mileage for claims from their former company, GGE Impact Corporation. Chulak was also charged with paying kickbacks to Medicaid patients for using his vans.

Elana Bilenkin pleaded guilty and was sentenced to four years' probation and 100 hours of community service.

Lesson Learned: Not facing up to fraud penalties can make matters worse for providers.

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