Physical rehabilitation company owner pleads guilty to $20 million healthcare fraud

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Physical rehabilitation company owner pleads guilty to $20 million healthcare fraud

Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice

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 involving more than $20 million in false medical claims. The announcement was made by U.S. Attorney Jay Clayton, HHS-OIG Special Agent in Charge Naomi Gruchacz, and FBI Assistant Director in Charge Christopher G. Raia.

Sklar admitted in court to submitting millions of dollars in fraudulent claims to various health benefit programs over several years. According to the charges and statements made in court, Sklar owned and operated a series of physical rehabilitation facilities around New York City. From January 2020 through July 2024, he submitted or directed others to submit over $20 million in claims for services purportedly rendered by a physician referred to as “Victim-1.” However, Victim-1 did not provide these services, was not employed by the company during that period, and did not authorize Sklar to use his name on any bills.

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

Naomi Gruchacz added: “The defendant in this case brazenly submitted false claims to receive funds for rehabilitation services that were never provided under a doctor’s care. 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.”

FBI Assistant Director Christopher G. Raia said: “Nosson Sklar defrauded health care programs of more than $20 million by submitting illegitimate claims with forged unauthorized physician signatures. 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.”

Court documents reveal that Victim-1 confronted Sklar about the fraudulent billing practices in July 2024. During these conversations, Sklar admitted he had committed fraud by billing under Victim-1’s name and acknowledged doing so for financial gain.

Out of the more than $20 million billed between January 2020 and July 2024 across three separate health plans, approximately $12.4 million was paid out.

Sklar pleaded guilty before U.S. District Judge Nelson S. Román to one count of health care fraud, which carries a maximum sentence of ten years in prison. Sentencing will be determined by the judge.

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