National Health Care Fraud Bust Leads to Charges Against 13 in New Jersey

Massive enforcement action targets fraudulent schemes in Medicare, Medicaid, and private insurance.

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that 13 individuals have been charged in New Jersey for their involvement in schemes to defraud Medicare, Medicaid, TRICARE, and private health insurers. These charges are part of the Department of Justice's 2024 National Health Care Fraud Enforcement Action, which resulted in 193 defendants being charged nationwide for submitting over $2.75 billion in false claims.

The coordinated effort, spanning two weeks, involved multiple federal and state agencies, including the Health Care Fraud Unit’s Strike Forces and various U.S. Attorneys' Offices across the country. The District of New Jersey, working with the Department's Criminal Division and other law enforcement bodies, played a crucial role in these investigations.

“Patients rely on Medicare and other health insurers to cover the costs of necessary care, and the system is built on trust. Healthcare providers and others who take advantage of that system through fraud or illegal kickbacks reap unwarranted profits and undermine the system. The cases announced today – part of a nationwide action against 193 defendants allegedly resulting in over $2.75 billion in alleged false billings, and the seizure of over $231 million in cash, luxury vehicles, gold and other assets – allege a variety of misconduct, but they all seek to hold accountable those who put profits over patients. Along with our law enforcement partners, this office is committed to safeguarding Medicare and the health care system from fraud and illegal kickback schemes,” U.S. Attorney Philip R. Sellinger.

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, is fully committed to working with our law enforcement partners and the Justice Department to hold those who engage in fraudulent activity at the expense of the U.S. military accountable for their actions,” Acting Special Agent-in-Charge Brian J. Solecki of the DCIS Northeast Field Office, said. “Protecting the integrity of the healthcare system utilized by our military members and their families is of the utmost importance and continues to be a top priority for DCIS.”

New Jersey Defendants and Charges:

• Kimberlee Otero, 47, Camden, NJ: Charged with conspiracy to unlawfully distribute and possess with intent to distribute a controlled substance. Prosecuted by Trial Attorney Nicholas K. Peone and Assistant U.S. Attorney Jeffrey Bender.
• Hyunji Choi, aka “Regina Choi,” aka “Regina Beatrice,” 39, Woodside, NY: Charged with conspiracy to commit health care fraud. Allegedly submitted false claims to the Amtrak health care plan, resulting in a loss of approximately $959,902.79. Prosecuted by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker.
• Timothy Bogen, 59, Hamden, CT; Kevin Frink, 52, Willingboro, NJ; Dion Jacob, 50, Brooklyn, NY; Quinton Johnson, 52, Irvington, NJ; David Lonergan, 64, Rockaway Park, NY; David McBrien, 36, Levittown, PA; Gregory Richardson, 34, Roosevelt, NY; Rodolfo Rivera, 41, Clayton, DE; Michael Toal, 34, Hazlet, NJ; Damany Walker, 41, Irvington, NJ: Charged with conspiracy to commit health care fraud, leading to a loss of approximately $11,054,831 to the Amtrak health care plan. Prosecuted by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker.
• Elise Nocella, 54, Naples, FL: Charged with conspiring to violate the Anti-Kickback Statute by paying kickbacks for durable medical equipment (DME) orders. Allegedly offered expensive items to physicians in exchange for DME orders, subsequently billed to Medicare and other health programs. Prosecuted by Assistant U.S. Attorney DeNae Thomas.

These charges highlight the ongoing efforts to combat healthcare fraud and protect public funds from exploitation. Each defendant is presumed innocent until proven guilty in court.

For more detailed descriptions of the cases involved in this enforcement action, visit the Department of Justice's website.