NJ physician accused of submitting false claims settles for $5.25M

A Westfield, N.J.-based physician, Labib E. Riachi, MD, has agreed to pay the federal government $5.25 million to resolve allegations that he and two of his companies fraudulently billed federal healthcare programs for tests that were never provided, according to the Department of Justice.

The settlement resolves allegations that Dr. Riachi billed Medicare and Medicaid for two diagnostic tests — anorectal manometry and electromyography — even though most of the tests were never performed. The settlement also resolves claims that Dr. Riachi and his two businesses submitted claims to Medicare for physical therapy services that were not performed by a qualified therapist.

The allegations against Dr. Riachi were brought in a civil lawsuit filed by the government on Feb. 10. The lawsuit accused Dr. Riachi of violating the False Claims Act, according to the DOJ.

Dr. Riachi owned and operated Riachi, Inc. and Advanced Pelvic Surgery, LLC, both based in Westfield.

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