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Doctor reaches settlement with government

A Monmouth County doctor, his oncology practice and his wife, who managed the practice, have agreed to pay the United States $1.7 million to resolve allegations they illegally imported and used unapproved chemotherapy drugs from foreign distributors and illegally billed Medicare, U.S. Attorney Paul J. Fishman announced on Feb. 16.

The settlement resolves allegations that The Oncology Practice of Dr. Kenneth D. Nahum, Nahum himself, and his wife, Ann Walsh, of Colts Neck, ordered cancer drugs from a foreign distributor, according to the U.S. Attorney.

From April 1, 2010, until Jan. 31, 2011, Walsh allegedly ordered chemotherapy drugs from the foreign distributor for use at the practice, which was owned by Nahum and operated in Howell and Wall Township. These drugs had not been approved by the U.S. Food and Drug Administration for sale in the United States, according to the U.S. Attorney.

Doctors at the practice allegedly injected the drugs into their patients and the practice then submitted claims to Medicare for reimbursement for the drugs and infusion services. Since Medicare will only reimburse for drugs that have been approved for use in the United States, the practice allegedly violated the federal False Claims Act, according to the U.S. Attorney.

Attorney Michael B. Himmel, who represented Nahum and the medical practice, said he had no comment on the outcome of the case.

Attorney Salvatore T. Alfano, who represented Walsh, also said he had no comment on the outcome of the case.

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