Montville-Based Doctor Admits Accepting $1.8M in Bribes From Lab

A doctor with an office in Montville pleaded guilty Wednesday to accepting $1.8 million in bribes to refer patients to a Parsippany laboratory, U.S. Attorney Paul Fishman announced Wednesday.

Frank Santangelo, 43, of Boonton pleaded guilty in Newark federal court to charges of money laundering, failing to file tax returns and for violating the Travel Act.

Santangelo could face up to 26 years in prison and a possible $850,000 fine. 
Officials said Santangelo received the bribes from Biodiagnostic Laboratory Services (BLS) LLC to refer patients to BLS, which was paid more than $6 million by Medicare and various insurance companies.

Santangelo received more than $800,000 through sham lease and service agreements between 2006 and 2010, Fishman said. He also received bribes from BLS through a third party — often tens of thousands of dollars a month — totaling more than $1 million between 2010 and April 2013 when he was arrested. Santangelo also has an office in Wayne.

As part of the plea agreement, Santangelo has agreed to forfeit more than $1.8 million.

Santangelo also pleaded guilty to money laundering, failing to file tax returns from 2009 to 2011, and pay taxes during that time, Fishman announced. He also admitted using another individual to hide the bribes from BLS.

Nine employees or associates of BLS and four physicians have pleaded guilty to their involvement in the scheme.