Physical rehabilitation company owner pleads guilty to $20M healthcare fraud scheme

Jay Clayton, U.S. Attorney for the Southern District of New York
Jay Clayton, U.S. Attorney for the Southern District of New York
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The U.S. Attorney’s Office for the Southern District of New York announced that Nosson Sklar, also known as Nathan Sklar, pleaded guilty to health care fraud after submitting more than $20 million in false medical claims to various health benefit programs. The plea was entered before U.S. District Judge Nelson S. Román.

Sklar owned and served as chief executive officer of a company operating several physical rehabilitation facilities in New York City. According to court documents, from January 2020 through July 2024, Sklar submitted or directed others to submit fraudulent claims for services allegedly rendered by a physician referred to as Victim-1. In reality, Victim-1 did not provide these services, was not affiliated with the company during that period, and had not authorized use of his name on the bills.

In July 2024, Victim-1 confronted Sklar about the fraudulent billing. During their conversations, Sklar admitted he had committed “fraud” by billing under Victim-1’s name and stated he did it “because [of] the money.”

Over this period, Sklar caused more than $20 million in claims to be submitted across three different health plans using Victim-1’s credentials. Of those claims, approximately $12.4 million were paid out by the health plans.

“As he admitted today in court, Nosson Sklar spent years submitting millions of dollars in fraudulent medical claims to various health benefit programs,” said U.S. Attorney Jay Clayton. “New Yorkers rely on honest billing to access care, and our Office will hold accountable those who drive up costs through criminal deception.”

“The defendant in this case brazenly submitted false claims to receive funds for rehabilitation services that were never provided under a doctor’s care,” said HHS-OIG Special Agent in Charge Naomi Gruchacz. “HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”

“Nosson Sklar defrauded health care programs of more than $20 million by submitting illegitimate claims with forged unauthorized physician signatures,” said FBI Assistant Director in Charge Christopher G. Raia. “Sklar, in his capacity as owner and CEO, violated the integrity of his company and a doctor at the expense of our healthcare system. The FBI will always hold accountable anyone who abuses their position to bill for ghost services just to turn a profit.”

Sklar pleaded guilty to one count of health care fraud which carries a maximum sentence of 10 years in prison; sentencing will be determined by a judge.

U.S. Attorney Jay Clayton commended both HHS-OIG and FBI for their investigative efforts on this case.

The prosecution is being handled by Assistant U.S. Attorneys Jorja N. Knauer and David A. Markewitz from the White Plains Division.



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