July 25, 2011
Office of The Attorney General
– Paula T. Dow, Attorney General
Division of Criminal Justice
– Stephen J. Taylor, Director
Office of the Insurance Fraud Prosecutor
– Ronald Chillemi, Acting Insurance Fraud Prosecutor
Media Inquiries-
Peter Aseltine
609-292-4791
Citizen Inquiries-
609-292-4925
North Jersey Doctor Re-Arrested on Charges of Practicing Medicine without a License and Medicaid Fraud
TRENTON – Attorney General Paula T. Dow and Acting Insurance Fraud Prosecutor Ronald Chillemi announced that a North Jersey neurologist, who previously was arrested in connection with a major Medicaid fraud and narcotics trafficking investigation, was re-arrested today for engaging in the practice of medicine knowing that his license is suspended and causing fraudulent prescription claims to be submitted to Medicaid.
According to Acting Insurance Fraud Prosecutor Chillemi, Dr. Madgy Elamir, 58, of Saddle River, was charged with health care claims fraud (2nd degree), Medicaid fraud (3rd degree) and the practice of medicine by an unlicensed person (3rd degree). Bail was set at $1 million cash or bond by Superior Court Judge Kevin G. Callahan in Hudson County.
The New Jersey Board of Medical Examiners suspended Elamir’s license to practice medicine in New Jersey effective December 23, 2009. Despite the suspension, which remains in effect, he allegedly has been writing prescriptions. Regulations allow Medicaid to pay for prescriptions only if they are issued by a properly licensed doctor and necessary for treatment of a beneficiary. It is alleged in the new charges that Elamir defrauded Medicaid by writing prescriptions without a medical license that were paid for by Medicaid.
Elamir is scheduled to go on trial in September in connection with a July 15, 2010 indictment charging him for his alleged role in a major network that engaged in narcotics trafficking and Medicaid fraud. The indictment alleges that between 2007 and 2009, Elamir, who has a practice in Jersey City, conspired with others to submit fraudulent claims to Medicaid and received Medicaid payments for medical examinations that had not been provided. It is also alleged that Elamir conspired to write medically unnecessary prescriptions for Medicaid beneficiaries, thereby causing pharmacies to submit claims to Medicaid for the medically unnecessary drugs.
The indictment further alleges that Elamir unlawfully distributed controlled dangerous substances by providing medically unnecessary prescriptions for Xanex and Percocet in return for cash. The indictment stemmed from Operation MedScam, an investigation by the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit and the Jersey City Police Department’s Special Investigation Unit which already has led to 35 guilty pleas, including pleas from another doctor, three pharmacists and numerous street-level drug dealers.
The narcotics network allegedly distributed prescription pain pills throughout Hudson County and other parts of the state, including Bergen, Ocean, Morris and Monmouth counties.
Detective Kevin Gannon, and Deputy Attorneys General Cynthia Vazquez and Conrad were assigned to the investigation for OIFP’s Medicaid Fraud Control Unit and were assisted by John Krayniak, who is the acting Deputy Chief of the Medicaid Fraud Control Unit.
They were assisted by Medicaid Fraud Control Unit Analyst Mitzi Gross, as well as the following members of the Jersey City Police Department’s Special Investigation Unit under the supervision of Chief Thomas Comey: Capt. Gary Lallo, Sgt. Anthony Musante, Sgt. Wally Wolf, Detective Wael Shahid, Detective Jeff Guilfoyle, Detective Vincent Disbrow, Detective Hector Marrero, Police Officer Alex Torres, Police Officer Chris Dolan and Police Officer Erik Infantes.
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