Owner Of Physical Rehabilitation Company Sentenced To 38 Months In Prison For $20 Million Fraud On Health Benefit Programs

 

United States Attorney for the Southern District of New York, Jamie McDonald announced today that NOSSON SKLAR, a/k/a “Nathan Sklar,” was sentenced to 38 months in prison for engaging in a scheme to defraud health benefit programs through the submission of more than $20 million in fraudulent claims.

“Today’s sentence reflects the seriousness of this crime and our Office’s commitment to safeguarding affordable health care from fraud for all New Yorkers,” said U.S. Attorney Jamie McDonald. “Nosson Sklar spent years bilking health care benefit programs of millions of dollars and will now spend serious time in prison for his conduct.”

According to the charging instruments, other public filings, and statements in public court proceedings: 

SKLAR was the owner and chief executive officer of a company that operated a series of physical rehabilitation facilities around New York City (the “Rehabilitation Company”).  Between at least January 2020 and in or about July 2024, SKLAR submitted or caused others to submit more than $20 million in claims for medical services to various health care benefit programs, asserting that those services were rendered by a physician who worked with the Rehabilitation Company (“Victim-1”). But that was false.  Victim-1 did not provide those services, did not work with the Rehabilitation Company during that time, and did not authorize SKLAR to submit bills in his name. 

In or about July 2024, Victim-1 spoke with SKLAR on at least two occasions about the fraudulent bills.  During those conversations, SKLAR admitted that he had committed “fraud” by billing under Victim-1’s name, and that he did it “because [of] the money.”

Between at least in or about January 2020 and in or about July 2024, SKLAR caused more than $20 million in claims to be submitted to three separate health benefit programs (the “Health Plans”), which listed Victim-1 as having been the rendering provider for the Rehabilitation Company.  Approximately $12.4 million of those claims were eventually paid by the Health Plans.

In addition to the prison term, SKLAR, 56, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $12,440,000 and to pay Victim-1’s legal expenses.

Mr. McDonald praised the outstanding investigative work of the U.S. Department of Health and Human Services, Office of Inspector General and Federal Bureau of Investigation.