Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced that an unlicensed former doctor and her husband were indicted yesterday (March 25) for billing a medical insurance company more than $172,000 for treatments that were not rendered to patients.
Lynda Stambaugh-Lupo, 52, and Michael Lupo, 61, both of Jackson, were charged by the state grand jury with second-degree conspiracy, second-degree health care claims fraud and second-degree theft by deception. Stambaugh-Lupo was also charged with third-degree practice of medicine by an unlicensed person.
OIFP is alleging that during the years 2012 through 2014, Stambaugh-Lupo, a former Doctor of Osteopathy, and her husband billed Anthem Blue Cross and Blue Shield approximately $172,626 for lymphatic therapy on two patients that Stambaugh-Lupo had not actually performed. The couple allegedly billed her lymphatic therapy services through their company In Home Lymphatic Care, LLC, for which Michael was office manager and signee on the allegedly fraudulent claims.
It further alleged that Stambaugh-Lupo, who surrendered her New Jersey Medical License in 1996 as a result of her arrest for obtaining a controlled dangerous substance by fraud, also represented to another patient and the patient’s medical insurer that she was a medical doctor. These representations were allegedly made over the phone or directly to the patient at her home and to the insurer in letters in 2010 and 2011 that laid out the suggested course of treatment for the patient.
Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of up to $150,000, while third-degree crimes carry a maximum sentence of five years in prison and a fine of up to $15,000.
Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org.