Albany, NY – New York State Inspector General Catherine Leahy Scott recently announced that a central New York orthopedic surgeon has pleaded guilty and admitted to running an ongoing scheme that defrauded the Workers’ Compensation system by more than $86,000.
Dr. Gregory B. Shankman, 70, of Clinton, pleaded guilty in Oneida County Court today to two counts of Offering a False Instrument for Filing in the Second Degree and is expected to surrender his license to practice medicine and to pay full restitution of $86,896.31 at the time of his sentencing in June.
An investigation by Inspector General Leahy Scott found Shankman, who maintained offices on Genesee Street in Utica, defrauded the Workers’ Compensation system by certifying he was at claimant medical exams at his Utica office when he was instead traveling in western New York, out of state, and even out of the country. On multiple occasions, based on the investigation, Shankman was performing Workers’ Compensation medical examinations in offices across upstate and western New York regions while also billing for examinations conducted simultaneously at his Utica office, where he was required to be under State law.
“This doctor brazenly supplemented his income through an illicit medical mill that left honest physicians at an unfair competitive disadvantage. With pure greed, he billed for services he was supposed to personally oversee but was instead traveling across the state or vacationing abroad.” said Inspector General Leahy Scott. “I will continue to use all resources at my disposal to pursue anyone who defrauds the Workers’ Compensation
The investigation found that Shankman was not in his Utica offices on more than 150 separate days between January 2015 and August 2017 while certifying he was at the office each of those days overseeing multiple Workers’ Compensation exams. On many of the days when he indicated he was performing exams at his offices in Utica, he was in fact performing other exams in offices near Buffalo, was out of State, and even traveling in
Iceland in the spring of 2016. As such, Shankman systematically submitted false bills for medical services rendered by a Workers’ Compensation medical provider to the State Insurance Fund, the County of Oneida and other insurance carriers, third party administrators, and self-insured entities.
Shankman pleaded guilty in Oneida County Court and remained released pending sentencing scheduled for on June 5, 2018.
Inspector General Leahy Scott thanked Oneida County District Attorney Scott D. McNamara and his office for assisting with the investigation and for prosecuting this matter.
Source: NY Inspector General’s Office