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NJ Medical Firm Pleads Guilty To Medicaid, Medicare Fraud

TRENTON, N.J. (CBSNewYork/AP) -- State authorities say a southern New Jersey medical firm and its office manager have admitted defrauding Medicaid and Medicare of $3 million.

Attorney General Paula Dow announced the guilty pleas Friday, one day after The Center for Lymphatic Disorders, based in Egg Harbor Township, and 54-year-old Farah Iranipour Houtan appeared in state Superior Court in Atlantic County. Houtan admitted that between 2004 and 2007, she billed the health care programs for treatment that wasn't provided.

In a related matter, 45-year-old Khashayar Salartash of Linwood, a surgeon and company owner, agreed Thursday to repay the $3 million as part of a separate consent agreement with the state.

The company treated patients with lymphedema, a disorder that causes fluid accumulation and swelling of the arms and legs.

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