WHITE PLAINS – Five people
were indicted on federal charges dealing with a widespread health care
fraud scheme through their fraudulent operation of Dolson Avenue Medical,
a multi-disciplinary medical clinic located in Middletown.
They are charged with attempting to bilk insurance companies and Medicare
out of more than $80 million.
James Spina, 59, of Middletown, Jeffrey Spina, 56, of Middletown, Andrea
Grossman, 59, of Loch Sheldrake, and Kimberly Spina, 54, of Woodbourne,
and Charles Bagley, 69, of Great Neck, a medical doctor affiliated with
the practice, were arrested on Thursday.
Bagley pled guilty to conspiracy to commit health care fraud, which carries
a maximum prison sentence of 10 years.
Brothers James and Jeffrey Spina were the owners and operators and ran
the day-to-day operations of Dolson Avenue Medical and at least eight
other medical corporations that on paper appeared to be separate entities,
but were run by the two men who are doctors of chiropractic – not
medical doctors.
Grossman was the bookkeeper and Kimberly Spina was the administrator of
the practice.
It is alleged they all submitted claims to insurance providers for medically
unnecessary services and procedures of those that were not rendered; double
billed; altered and fabricated medical records; and obstructed and impeded
audits by Medicare and other insurance providers to conceal their fraud.
They were all charged with conspiring to commit health care fraud and
health care fraud, each of which carries a maximum sentence of 10 years
in prison. The Spina brothers were also charged with obstructing and impeding
a federal audit, which carries a maximum of five years in prison.
