A New Jersey doctor, practicing near Cherry Hill, and his chiropractor son have been handed prison sentences for their involvement in a significant Medicare fraud scheme. Robert Claude McGrath D.O., 66, and Robert Christopher McGrath, 48, both residing in Cherry Hill, were sentenced to 30 months and 12 months in prison respectively, marking a severe consequence for their fraudulent activities.
The sentencing, delivered by U.S. District Judge Robert B. Kugler in Camden federal court, follows their guilty pleas to conspiracy to commit health care fraud. This case highlights the ongoing efforts to combat healthcare fraud and protect taxpayer-funded programs like Medicare.
According to court documents and statements, the McGraths operated Atlantic Spine & Joint Institute, with locations in Westmont, New Jersey, and Wayne, Pennsylvania. Their scheme, active from January 2011 to April 2016, involved a calculated effort to defraud Medicare. Medicare regulations stipulate that physical therapy must be administered by a qualified physical therapist or a supervising physician, such as Dr. Robert Claude McGrath.
However, the McGraths knowingly employed unlicensed and untrained individuals to provide physical therapy to Medicare beneficiaries. Crucially, these unqualified treatments were often given when Dr. McGrath, the supposed supervising physician, was not even present at the office. Subsequently, they submitted fraudulent bills to Medicare, falsely claiming that Dr. Robert Claude McGrath had personally provided the physical therapy services. This deceptive practice allowed them to illegally claim substantial reimbursements from the government program.
In addition to their prison sentences, both men were ordered to serve three years of supervised release and jointly pay $890,000 in restitution for the financial losses incurred by Medicare. Furthermore, a related civil settlement, announced concurrently with their guilty pleas, requires the McGraths and Atlantic Spine to pay $1.78 million, plus interest, to the federal government. This civil settlement resolves allegations that their fraudulent billing practices violated the False Claims Act, underscoring the extensive legal and financial ramifications of their actions.
The investigation was a collaborative effort, spearheaded by agents from the FBI’s South Jersey Resident Agency, the Department of Health and Human Services, Office of Inspector General, and the Food and Drug Administration, Office of Criminal Investigations. The case was prosecuted by Assistant U.S. Attorneys R. David Walk Jr. and Andrew A. Caffrey III of the U.S. Attorney’s Office Health Care and Government Fraud Unit, demonstrating the dedicated focus on combating healthcare fraud within the legal system.
The U.S. Attorney’s Office for New Jersey has made significant strides in tackling health care fraud since reorganizing its practice in 2010. The creation of a dedicated Health Care and Government Fraud Unit has led to the recovery of over $1.33 billion in settlements, judgments, fines, restitution, and forfeiture. This case against “Doctor Cherry” and his son serves as a stark reminder of the serious consequences for those who attempt to defraud healthcare systems and highlights the vigilance of law enforcement and the justice system in protecting public funds and ensuring ethical healthcare practices.
