Two Women Indicted in East Orange for Alleged Medicaid Fraud and Unlicensed Medical Practice

Charges stem from over 2,500 claims submitted to Medicaid for services allegedly performed without proper medical licenses

Two women, including the owner of a women's health clinic in East Orange, New Jersey, have been indicted on multiple criminal charges related to the alleged unlicensed practice of medicine and fraudulent billing to the New Jersey Medicaid Program. The announcement was made by Acting Attorney General Jennifer Davenport, alongside the Division of Criminal Justice (DCJ) and the Office of the Insurance Fraud Prosecutor (OIFP).

Esney Davis-Sharpe, 63, of East Orange, and Nataliya Lushchak, 48, of Lower Gwynedd, Pennsylvania, are each charged with one count of conspiracy to commit health care claims fraud (second degree), unlicensed practice of medicine (third degree), health care claims fraud (second degree), and Medicaid fraud (third degree).

“This case alleges a deliberate abuse of the Medicaid system and a betrayal of patient trust,” said Acting Attorney General Davenport. “Submitting claims for medical services performed by unlicensed individuals undermines the integrity of Medicaid and diverts critical resources from those who rely on the program. OIFP will continue to hold accountable those who abuse the Medicaid program and place patients at risk.”

According to the indictment, Davis-Sharpe owned and operated Bessie Mae Women’s Health Center, a clinic offering gynecology, primary care, and family health services. Authorities allege that neither Davis-Sharpe nor Lushchak held valid medical licenses in New Jersey, yet both performed gynecological services on patients at the facility.

Lushchak was reportedly hired in May 2021 as a practitioner, despite being enrolled as a medical student at Suburban Community Hospital in Norristown, Pennsylvania, and not licensed to provide medical services in New Jersey.

From December 2020 to February 2024, the clinic allegedly submitted approximately 2,500 reimbursement claims to the New Jersey Medicaid Program using the names of licensed doctors identified only as “Dr. N.J.” and “Dr. K.R.” in the indictment. The doctors’ names were allegedly used without their knowledge, consent, or involvement in the services billed.

On January 25, 2024, the New Jersey Department of Health issued a cease-and-desist order, halting all operations at Bessie Mae Women’s Health Center.

State officials underscored the seriousness of the allegations.

“This case shows the importance of state agencies working together to respond to reports of allegedly illegal activity and root it out,” said DCJ Director Theresa L. Hilton. “Thousands of claims were allegedly submitted to Medicaid for reimbursement to which these defendants are not entitled. Health care fraud endangers the public and wastes limited public resources.”

The case is being prosecuted by Deputy Attorneys General Sean O’Connor and Lauren Aranguren from OIFP’s Medicaid Fraud Control Unit, with investigative support from Detectives Regina Strugala and Chantel Blake.

Second-degree charges carry penalties of five to ten years in prison and fines up to $150,000, while third-degree charges may result in three to five years’ imprisonment and fines up to $15,000.

As with all criminal cases, the charges are accusations, and the defendants are presumed innocent until proven guilty in a court of law.

The New Jersey Medicaid Fraud Control Unit (MFCU) is federally funded at $11.6 million for fiscal year 2026, with 75% of its funding provided by the U.S. Department of Health and Human Services.

Members of the public who suspect Medicaid fraud or elder abuse are encouraged to report it via the state’s official Medicaid Fraud or Elder Abuse & Neglect Reporting Form or by contacting the MFCU at (609) 292-1272 or NJMFCU@njdcj.org.