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Two NJ Marketing Executives Sentenced in $127M Health Care Fraud

New Jersey

By: Jeff Sommes 

Two men who ran a New Jersey-based marketing company have been sentenced to federal prison for orchestrating a nationwide health care fraud and kickback scheme that bilked Medicare and TRICARE out of over $127 million, according to a statement released by the U.S. Department of Justice.

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Eric Karlewicz, also known as “Anthony Mazza,” 46, of Rockland County, New York, was sentenced to 51 months in prison, while Nicco Romanowski, 33, of Roswell, Georgia, received an 80-month sentence. 

The two were sentenced by U.S. District Judge Esther Salas in Newark federal court after pleading guilty to conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute.

According to federal prosecutors, from mid-2017 to mid-2019, Karlewicz and Romanowski operated Empire Pain Center Holdings LLC, a marketing company that worked with doctors, telemedicine firms, and medical equipment suppliers to submit fraudulent claims for durable medical equipment (DME) such as braces for shoulders, knees, and backs.

Using aggressive call tactics, Empire employees pressured Medicare and TRICARE recipients to accept medical equipment they often didn’t need.

The company then paid kickbacks to telemedicine firms, which in turn paid doctors to sign off on the orders—frequently without consulting patients. 

The prescriptions were sent to DME suppliers, who submitted claims for reimbursement and shared a portion of the proceeds with Empire.

Through these illicit arrangements, Karlewicz and Romanowski’s company received more than $63 million, while the total fraudulent claims exceeded $127 million. 
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Authorities said the two used proceeds from the scheme to purchase high-end luxury cars including a Ferrari, Lamborghini, Bentley, and BMW.

In addition to prison time, each defendant was sentenced to three years of supervised release and ordered to pay $127.6 million in restitution.