TRENTON (AP) — State authorities say a New Jersey doctor took part in a scheme that used more than two dozen "phantom employees" to help him launder $3.6 million in earnings and avoid paying taxes.

(L-R) Manoj Patharkar and Mohammed Shamshair (Office of the NJ Attorney General)

Manoj Patharkar, who has practices in Edison and Passaic, and an alleged co-conspirator, 51-year-old Mohammed Shamshair, of Sayreville, face numerous in an indictment handed up Monday by a state grand jury. It was made public Tuesday after they were arrested.

The charges they face include conspiracy, money laundering, theft by deception, tax fraud, and records tampering. Bail was set at $200,000 cash for each man, and it wasn't known if either one had retained an attorney.

Authorities say Patharkar, a 44-year-old Laurence Harbor resident, cheated the state out of $327,000 in taxes by creating about 28 "phantom employees."

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)