Crime & Safety

Holmdel Man Pleads Guilty in Bribes-for-Test-Referrals Scheme

Lee Rubinstein admitted paying cash bribes to doctors to refer patients to Parsippany-based Biodiagnostic Laboratory Services.

A Monmouth County man pleaded guilty to a bribes-for-test-referrals scheme operated by Biodiagnostic Laboratory Services LLC of Parsippany, U.S. Attorney Paul J. Fishman announced.

Holmdel resident Lee Rubinstein, 42, was charged with conspiring to violate the Anti-Kickback Statute and the Travel Act, money laundering and making cash payments of thousands of dollars to doctors on behalf of BLS, Fishman said in the press release.

Rubinstein paid doctors in cash bribes to refer patients to BLS for testing of blood specimens from May 2012 through April 2013, Fishman said. He admitted he used Delta Consulting Group LLC, a company he controlled, to hide the money received and used from BLS to make the bribes.

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The organizers of the scheme admitted it involved the payment of millions of dollars in bribes and resulted in $100 million in payments to BLS from Medicare and private insurance companies, Fishman said in the release.

Rubinstein is the 14th individual to plead guilty in this case. He faces a maximum potential penalty of five years in prison and a $250,000 fine on the bribery conspiracy charge and 20 years in prison and a $500,000 fine on the money laundering charge, or twice the gross gain or loss from the offense.

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The investigation has recovered more than $3 million through forfeiture, Fishman said.


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