Health Club Operators and Chiropractor Charged with Health Care Fraud

March 18, 2010 - PHILADELPHIA—Mark Levin, Michael Karp, and Dr. Raymond Brozek, a chiropractor, were charged today by information1 in connection with a $1.9 million scheme to defraud Independence Blue Cross (“IBC”), announced United States Attorney Michael L. Levy. The charges allege that Levin and Karp were the owners of the Hatfield Athletic Club and Rehab One, a chiropractic and rehabilitation facility located inside the club, in Hatfield, Pennsylvania. It is alleged that Dr. Brozek was a chiropractor hired by Levin and Karp to work at Rehab One from approximately 2004 through 2006. In addition to seeing patients at Rehab One, it is alleged that Brozek saw some patients at a gym located in the basement of Levin’s home, known as Rehab Two, and at the homes of Levin’s friends.

Between 2004 and 2006, it is alleged that Rehab One fraudulently billed Independence Blue Cross (“IBC”) for chiropractic treatments that Dr. Brozek performed that were not medically necessary that were purportedly supervised by Brozek or provided directly by Brozek when he, Levin and Karp knew the services were not performed by Brozek or any other licensed medical professional, and for services the defendants knew were not reimbursable. It is alleged that Dr. Brozek prepared fraudulent superbills for the Hatfield Athletic Club employees who signed Rehab One’s patient log but did not receive treatment and for the employees and family members who purportedly received weekly chiropractic treatment. Dr. Brozek allegedly completed the forms provided to him by defendants Karp and Levin containing the names of Hatfield Athletic Club employees and family members who purportedly received weekly chiropractic treatment or prepared superbills with the information provided to him and included fictitious procedure codes and false representations of patient symptoms and clinical findings.

In total, it is alleged that the defendants caused the submission of fraudulent medical bills to IBC totaling approximately $1.9 million, resulting in payments from IBC totaling approximately $399,822.

Information Regarding the Defendants

Mark Levin Bala Cynwyd, PA 64

Michael Karp Bala Cynwyd, PA 39

Raymond Brozek Telford, PA 57

If convicted, Levin faces a maximum possible sentence of 10 years imprisonment, a $250,000 fine; Karp and Brozek each face a maximum possible sentence of 30 years imprisonment and a $500,000 fine. The defendants may also be ordered to pay restitution to Independence Blue Cross.

The case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Anita Eve.