Regional Manager shame on you!

Medical Device Company Officials Admit Scheme to Defraud Hospitals of $800,000



FOR IMMEDIATE RELEASE

August 12, 2014


TRENTON, N.J. – A regional manager and a product specialist selling medical devices to hospitals for Integra LifeSciences Corp. of Plainsboro, New Jersey, today admitted their roles in a scheme to defraud hospitals of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Daniel Metz, 34, of Fairfield, New Jersey, and Charles B. Carey Jr., 35, of Clark, New Jersey, each pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to separate informations charging them with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Integra is a provider of orthopedic products, including devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow. Metz worked there from July 2005 until his termination in April 2013, first as a product specialist (also referred to as a sales representative) and then as Northeast regional manager, supervising 16 product specialists and assistant sales representatives in Massachusetts, New Jersey, New York, and Pennsylvania. Carey was a product specialist, reporting to Metz, from January 2009 until he resigned in April 2011.
Product specialists at Integra were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries. When present during surgeries, product specialists brought with them consignment trays with pre-packaged Integra products available to surgeons, as well as surgery-specific products. Integra billed the hospitals and surgery centers for the products used and product specialists (and their supervisors) were compensated based on salary, sales target-based commission and bonuses.
Metz admitted he used various fraudulent methods to overcharge hospitals and surgery centers. He would sometimes charge for a greater quantity or a more expensive product than was actually used, increasing his compensation and improving his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods.
Metz and Carey fraudulently caused medical facilities to pay more than $800,000 in inflated bills.
The count of conspiracy to commit wire fraud to which Metz and Carey pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Metz and Carey also agreed to forfeit $100,000 and $77,000, respectively, representing the amounts of money they personally made through the fraud scheme. The defrauded hospitals have been reimbursed by Integra for the fraudulent charges.
Sentencing is scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty pleas. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-290
Defense counsel:

Metz: Lawrence Lustberg Esq., Newark
Carey: Timothy Donohue Esq., West Orange, N.J.

 

I wonder who will be the next to fall from the mighty NE?

 

Why would you say that

 

Federal crimes require YOU to do the time!!!!plus pay the monetary penalty I believe. No good time, suspended sentences, deffered sentences or good time. It's all you and the clock. These boys are gone gone gone.

Quota achievement has it's limitations.

 

"Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods."

This implies he taught the fraudulent methods to other product specialists working for him, not only Carey....

 

This is no surprise. Any rep with integrity and a moral compass left this division years ago.

 

Come'on. That's crap. I would say those without one left a long time ago because the roaches always scatter when the lights are turned on. While greatly flawed, this company and division has no more of a "moral compass" issue than any other. Anyone who thinks their sh*t doesn't stink in this business needs a serious reality check.

 

No way. I'm Republican and according to that comedian with the last name of Black all I have to do is pull the stick completely out of my ass and smell it! I did just that and you know, my shit doesn't stick either.

 

This explains how the NE outperformed the rest of the country. They cheated, lied, and unethically stole money. Great example!

 

Nothing was implied. It explicitly states that the manager taught those fraudulent methods to other product specialists working for him, not only Carey.

"It was part of the conspiracy that Daniel Metz, Charles B. Carey Jr., and others used numerous interstate wires in furthermore of the conspiracy, including email communications from Daniel Metz to Product Specialists throughout the Northeast Region regarding billing techniques."

Lots more to come in the NE and company I would think.

 

Daniel Metz, 34, of Fairfield, Sentenced to Nine Months for Conspiracy to Commit Wire Fraud, Thursday
1/22/2015

by Carolyne Volpe Curley / Carolyne@WestEssexNOW.com
Published 6:08pm

FAIRFIELD, NJ - In Trenton today, Daniel Metz, 34, of Fairfield, was sentenced to prison for his role in a scheme to defraud hospitals of more than $800,000, according to US Attorney Paul J. Fishman. In August, Metz had pled guilty to conspiracy to commit wire fraud, a count which carries a maximum potential penalty of 20 years in prison and a $250,000 fine. He was sentenced today to nine months in prison and nine months of home confinement. Charles B. Carey Jr., 35, of Clark, whose cooperation led to Metz’ conviction, was sentenced to three years of probation.
According to documents filed in this case and statements made in court, Metz and Carey both worked for Integra LifeSciences Corporation of Plainsboro, a provider of orthopedic products such as devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow.

Integra initially employed Metz as a Product Specialist in July, 2005. Apparently, surgeons routinely allow product specialists to be present during surgeries and, should they need any of the items which the sales person has with them, they use the items and the hospital is later billed for the items used. Integra Product Specialists bring with them consignment trays with pre-packaged products and they, and their supervisors, are compensated based on salary, sales target-based commission and bonuses.

Metz eventually became Northeast Regional Manager, supervising 16 Product Specialists and Assistant Sales Representatives in Massachusetts, New Jersey, New York, and Pennsylvania. While working in his managerial role, Metz oversaw Carey, who was a Product Specialist from January, 2009, until he resigned in April, 2011.

During court proceedings, Metz admitted that he used various fraudulent methods to overcharge hospitals and surgery centers, including sometimes charging for a greater quantity or a more expensive product than was actually used. He also admitted in court that he taught his fraudulent schemes to those he supervised, including Carey, who admitted to also employing the methods.

Together, Metz and Carey admitted to fraudulently causing medical facilities to pay more than $800,000 in inflated bills. When the fraud was brought to the company's attention, Metz was fired from Integra in April, 2013.

In addition to the prison term and home confinement, US District Judge Joel A. Pisano sentenced Metz to three years of supervised release. As part of their plea agreements, Metz will pay $100,000 and Carey, $77,000, which represents the amounts of money they personally made through the fraud scheme. The defrauded hospitals have already been reimbursed by Integra for the fraudulent charges.

Assisting Fishman with the investigation were special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford and Morris County Prosecutor’s Office detectives, under the direction of Prosecutor Fredric M. Knapp.

The US Attorney's stand-alone Health Care and Government Fraud Unit handles both criminal and civil investigations and prosecutes health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

The government was represented by Jacob T. Elberg, Chief of the US Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.

The defense counsel for Metz was Lawrence Lustberg Esq., Newark, and for Carey, Timothy Donohue Esq., of West Orange.

 

these guys are so screwed. aside from the jail time and ass pounding they will get, when they are finally released, they will never be able to get a professional job again with the felony on their record. these dudes will be doing blue collar grunt work for the rest of their lives.

 

Only Metz got jail time.

 

BYE FELICIA!! I mean Aime. Although you do hold a record that may never be contested. You single handily lost all of the tenured reps on your team and bombed the region losing 75% of the volume, in under one year!! Congrats!