New Jersey Health Care Sham Broken Up

Three top officials of Biodiagnostic Laboratory Services (BLS) – a New Jersey medical diagnostics lab - are facing federal conspiracy charges.

“BLS is alleged to have paid millions of dollars of bribes to doctors to direct or to refer their patients blood samples to BLS, and to have encouraged doctors to order unnecessary tests to increase the profits of the company,” according to U.S. Attorney for New Jersey Paul Fishman.

David Nicoll of Mountain Lakes, the President of BLS, along with his brother Scott and Craig Nordman of Whippany appeared in Federal Court in Newark this afternoon.

A fourth man, Dr. Frank Santangelo of Boonton, has been charged with accepting bribes.

Doctors were paid as much as $1,500 a month for the blood test referrals. The investigation – which has been ongoing for the past 7 years - is continuing, and authorities say more arrests are expected.