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N.J. neurologist indicted for 7 cases of billing fraud

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The neurologist operated in Essex, Middlesex, Passaic and Union counties.

TRENTON -- A neurologist from Livingston has been indicted for submitting false insurance claims for procedures performed by a licensed technician or not performed at all, acting Attorney General John Hoffman announced Tuesday.

A grand jury in Middlesex County on Friday indicted Gautam Sehgal, 52, for filing seven false claims from February 2011 and October 2013 to 21st Century Insurance Company, Travelers Insurance Company, Encompass Insurance Company, and Metropolitan Life Insurance Company. He was also indicted on theft by deception charges stemming from false claims to Allstate Insurance Company, Farmers Insurance Company, Progressive Insurance Company, AIG Insurance Company, and NJ Cure Insurance Company, Hoffman said.

Sehgal billed for seven needle Electromyography (EMGs), a test to diagnose muscle problems, and in six of these cases, an unlicensed technician actually performed them, according to Hoffman's statement. In the seventh case, no patient was ever treated, he said.

The insurance companies assisted in the investigation, Hoffman said.

The neurologist has practices in Newark, Perth Amboy, Clifton, Elizabeth, South Orange and Paterson, Hoffman's announcement said. Messages left at two of his offices were not returned.

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"The integrity of physicians is the lynchpin of the health care claims process," according to a statement from acting Attorney General Hoffman. "Doctors who file false claims undermine that system and drive up health care costs for honest participants."

People may file anonymous complaints about suspected insurance fraud by calling 1-877-55-FRAUD, or visiting www.NJInsurancefraud.org. Rewards may be paid to information that leads to an arrest, prosecution and conviction for insurance fraud.

Susan K. Livio may be reached at slivio@njadvancemedia.com. Follow her on Twitter @SusanKLivio. Find NJ.com Politics on Facebook.


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