Delran Doctor Reaches $106K Settlement On Fraud Allegations: FBI

DELRAN, NJ — A doctor who has medical practices in Delran and Trenton has reached a $106,255 settlement to resolve charges of health care fraud, alleging billing Medicaid and Medicare for in-person services during periods when he was traveling out of state, Acting U.S. Attorney Rachael A. Honig announced.

Between Jan. 1, 2016, and March 31, 2020, Vedat Obuz and his medical practice, Lotus Clinics P.C./Lotus Family Medicine, are accused of claiming he performed certain procedures when it was actually nurse practitioners who performed those services, according to the settlement agreement.

The medical codes used in the billings indicated that Obuz was the treating physician and the services billed for required him to be physically present to see the patients.

For example, travel records show Obuz was in Tel Aviv, Israel, from Nov. 1-6, 2017, according to authorities. On Nov. 2-4, 2017, Obuz billed Medicare and Medicaid $4,660 for treating approximately 30 patients, authorities said.

Travel records show Obuz was in Istanbul, Turkey, from April 18-22, 2018, according to authorities. On April 19-21, 2018, he billed Medicare and Medicaid $7,770 for treating 53 patients, authorities said.

The allegations came to light in a lawsuit filed under the whistleblower provisions of the False Claims Act, officials said. The Act allows private parties to sue for false claims on behalf of the United States and to share in any recovery. Kathleen Menold filed the lawsuit, and will receive 20 percent from the federal share of the settlement, officials said.