NEWARK, N.J. — Two operators of a New Jersey-based marketing company have been sentenced to prison for their roles in a massive health care fraud and kickback conspiracy that led to more than $127 million in false claims submitted to federal health benefit programs, U.S. Attorney Alina Habba announced.
Eric Karlewicz, also known as “Anthony Mazza,” 46, of Rockland County, New York, was sentenced to 51 months in prison, while Nicco Romanowski, 33, of Roswell, Georgia, received an 80-month prison term. Both defendants had pleaded guilty in Newark federal court to conspiracy to violate the Federal Anti-Kickback Statute and conspiracy to commit health care fraud. The sentencing was handed down by U.S. District Judge Esther Salas.
Between June 2017 and May 2019, Karlewicz and Romanowski used their marketing firm, Empire Pain Center Holdings LLC, to orchestrate a nationwide scheme that involved durable medical equipment (DME) companies, telemedicine services, and medical professionals. The defendants targeted Medicare and TRICARE beneficiaries, pressuring them into accepting DME such as back, shoulder, and knee braces, even when the equipment was not medically necessary.
Empire employees were incentivized with bonuses and commissions based on the number of beneficiaries they enrolled. Telemedicine firms were paid by Empire, which then paid kickbacks to physicians who signed off on DME prescriptions without conducting proper consultations. These fraudulent prescriptions were sent to DME suppliers, who submitted false reimbursement claims to government health programs, returning a portion of the proceeds to Empire as part of the kickback scheme.
In total, Empire received over $63 million in kickbacks, and Karlewicz and Romanowski were responsible for the submission of more than $127 million in false claims. Federal investigators revealed that funds from the fraudulent scheme were used to purchase luxury vehicles, including a Ferrari, Lamborghini, Bentley, and BMW.
Along with the prison sentences, Judge Salas imposed three years of supervised release for each defendant and ordered restitution of $127.6 million. Karlewicz was further ordered to forfeit over $63 million, while Romanowski must forfeit more than $5.5 million.
Karlewicz and Empire also entered into a civil settlement agreement with the U.S. government, admitting to violations of the False Claims Act. The settlement includes a $63.8 million consent judgment. The resolution of the civil case follows a whistleblower lawsuit filed under the False Claims Act by Robert Jackson Tyler, Jr., who will receive a share of the government’s recovery.
