Rehan "Ray" Zuberi, 45, owner of Diagnostic Imaging Affiliates of Hackensack, was arrested today as the ringleader of an alleged criminal. Rehan Zuberi. Manalapan Chiropractor Charged in Medical Kickback Probe. A chiropractor from Manalapan with a practice in Elizabeth is one. "Plaintiffs") for Default Judgment as to Faizah Zuberi, Rehan Zuberi, .. As to all of these allegations, Plaintiffs articulate facts to meet the.
This scheme is based on New Jersey's No-Fault Laws, which permit insured individuals to assign their rights to Personal Injury Protection "PIP" benefits to healthcare service providers in exchange for the provision of medically necessary services following automobile accidents. The provider must comply with all NJ statutory and regulatory provisions id. Zuberi, Khan, and Din. Plaintiffs allege that R. In JuneDefendant R. Zuberi and others were arrested and charged with criminal violations associated with this scheme.
On October 16,seven medical service providers who referred patients to Defendant R. Zuberi's facilities were also arrested. On May 11,Defendant R.
Zuberi "pleaded guilty to first-degree financial facilitation of criminal activity, and second-degree conspiracy to commit commerical bribery in connection with, among other things, the Defendants' fraudulent scheme.
Defendant Din pled guilty to "charges of conspiracy, money laundering, commerical bribery, and misconduct of a corporate official" for the payment of kickbacks.
Plaintiffs filed this lawsuit on January 31, Zuberi, Din, and Khan. The Complaint included twelve causes of action, encompassing claims for: Default was entered against Nazish Khan on August 3, Zuberi on September 21, Plaintiffs have now moved for default judgment as to the Defaulting Defendants.
In opposition, Defendant Khan cross-moved to vacate default on the basis of improper service and to deny default judgment ECF No. A party who has made a proper showing under Rule 55 is not entitled to default judgment as of right; the entry of default is left to the district court's discretion. The court is to consider three factors in deciding whether default judgment is appropriate: The court also has the discretion to set aside an entry of default for good cause.
When determining whether to vacate default, the court weighs the same three Chamberlain factors. The Third Circuit has cautioned that default judgment is a sanction of last resort—cases are more appropriately decided on their merits where practicable.
Williamsport Police Dep't, 69 F. App'x 49, 51 3d Cir. Therefore, doubtful cases are to be resolved in favor of the party moving to set aside the default so that cases may be decided on the merits. Because proper service of process is required to establish personal jurisdiction over a defendant, the Court "must first assess the adequacy of service of process in order to determine whether default judgment should be entered.
GOVERNMENT EMPLOYEES INSURANCE CO. v. HAMILTON HEALTH CARE CENTER P.C.
Where a plaintiff cannot demonstrate proper service, default is not valid and must be set aside. New Jersey law prefers personal service, but where service cannot be effectuated successfully, substituted service may be made "by certified mail, return receipt requested or service as permitted by court order. Defendant Khan claims that she was improperly served twice in this action: Plaintiffs made various attempts at service via directed guaranteed subpoena to an address for Defendant Khan found in LexisNexis's person locator.
After the initial address proved unsuccessful, Plaintiffs unsuccessfully attempted another address found in public deed records. Plaintiffs provided documentation of service and subpoenas of due diligence of service for February 24, and March 22, Plaintiffs then moved for substituted service for Defendants R.
Magistrate Judge Douglas E. Substituted Service at6. The parties agree that Mr. Cohen previously represented Defendant Khan. Cohen, however, certifies that although the affidavit reflects delivery while he was away from the office, he did not actually receive the complaint. Defendant Khan likewise claims she did not receive the complaint from her former attorney. Cohen's certifications, the Court is satisfied that service on Defendant Khan was in fact valid.
June 7, citing NJ cases for proposition that substituted service is valid despite the fact that the defendants never received the complaint. Service was effectuated pursuant to court order for substituted service, and it was in fact delivered to Defendant Khan's attorney and to an individual who represented her ability to accept service. Therefore, the Court finds no basis to vacate or set-aside default for improper service of process. Sufficiency of Plaintiffs' Claims Of the twelve causes of action pled in the Complaint, Plaintiffs move for default judgment as to the second, sixth, and eighth causes of actions.
Therefore, the following discussion is limited to relief for 1 IFPA violations, 2 common law fraud, and 3 unjust enrichment. New Jersey Insurance Fraud Prevention Act Violations The IFPA provides a remedy to insurance companies where individuals or practitioners commit violations in a number of different categories, including: The act also covers conduct such as fraudulent kickback-referral schemes.
These violations and proof of such require a preponderance of the evidence, id. Thus, an IFPA claim requires a plaintiff to allege " 1 knowledge, 2 falsity, and 3 materiality. Focus Express Mail Pharmacy, Inc.
GOVERNMENT EMPLOYEES INSU | Civ. No. | b70 | victoryawards.us
Plaintiffs have pled violations of IFPA related to falsified insurance claims, concealment and failure to disclose facts affecting entitlement to benefits, and a kickback referral scheme. Zuberi's prior criminal conduct which resulted in his imprisonment and barred him from participation in Medicaid and "legally disqualified him from owning, managing, or operating an ambulatory care facility such as GSMI.
These forms and reports also misrepresented that the services provided in those forms and reports complied with NJ law; in fact they were not medically necessary under PIP or even actually administered to patients. As to all of these allegations, Plaintiffs articulate facts to meet the three criteria of an IFPA claim.
The Defaulting Defendants were well aware of their ineligibility to operate a facility, but used a series of management, marketing, and billing agreements to involve R. Defendants also knowingly orchestrated these fraudulent schemes, paying Hamilton Healthcare and Fass for referrals of patients for the fraudulent billing. They submitted fraudulent forms, reports, and bills, satisfying the second prong; and their misrepresentations were material, as they comprised the basis for reports and bills and induced Plaintiffs to pay out insurance benefits.
Common Law Fraud A claim for common law fraud remains distinct from claims under the IFPA, demanding additional elements than those described above. A claim of common law fraud under New Jersey law has five elements: App'x3d Cir.How small the world really is ? With Mara Ahmad and Khurram Zuberi
Where a party is under a duty to disclose to another, silence through omissions or failure to inform—rather than active misrepresentation—can be fraudulent. These fraudulent claims were made for patients who never received or needed such treatment see Compl. In other words, "presuming the allegations to be true," these were misrepresentations of facts that Defendants knew to be true, that caused reliance and damages to Plaintiffs "by paying unwarranted insurance benefits. Most web browsers automatically accept cookies but, if you prefer, you can usually modify your browser setting to disable or reject cookies.
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