Hundreds of Doctors Involved in Medicare Scam, Lab President Claims

Hundreds of doctors in New York and New Jersey allegedly conspired with a medical laboratory to defraud Medicare, the president of that laboratory told the NBC affiliate in New York.

Scott Nicoll, president of Biodiagnostic Laboratory Services (BLS) in Parsipanny, claimed through his lawyer that his firm paid millions in bribes to doctors in order to bill Medicare for extra and/or unnecessary blood tests. Nicoll and seven others pleaded guilty in a Newark federal court yesterday to charges of conspiracy to bribe physicians and money laundering.

The lab president reportedly claims that in many cases, it was the physicians who demanded bribes before they would send blood work to BLS. Nicoll’s lawyer said his client has turned over the names of the physicians involved to the FBI. The FBI will only say it is investigating the allegations.

Nicoll and six other defendants will be sentenced in September.