Oceanside resident, doctor arrested in connection to health care fraud scheme


An Oceanside resident was one of 412 people arrested as part of a nationwide crackdown on health care fraud spearheaded by the United States Department of Justice. Combined, the fraud schemes involved roughly $1.3 billion in false billings.

Dr. Abraham Demoz, 57, who was taken into custody on July 10, was named in a regional indictment along with four other health care professionals working in Brooklyn and Queens, for their role in a wide-ranging conspiracy that billed Medicare about $100 million in fees. Demoz’s practice is located in Canarsie.

According to the indictment, Demoz, along with the other defendants, allegedly paid illegal kickbacks for the referral of patients to their clinics, where those patients received physical and occupational therapies, and other services that their medical conditions did not warrant.

Demoz’s attorney could not be immediately reached for comment.

This story will be updated as more information becomes available.