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Fourteen Doctors Arrested in Fraud, Kickback Scheme

October 29, 1986

CHICAGO (AP) _ Authorities have arrested 14 doctors on charges that they defrauded the state through false Medicaid claims or accepted kickbacks to steer their state business to a laboratory.

The indictments of the doctors and of the Gran-Cal Clinical Laboratory were announced Tuesday. All 14 physicians were taken into custody, said Al Manning, spokesman for Illinois Attorney General Neil Hartigan.

″The laboratory was paying off the doctors to get their business,″ said James Zagel, director of the Illinois State Police. ″The laboratory then inflated its Medicaid billings to make up for the money it paid out to the doctors.″

Gran-Cal is charged in a business indictment with submitting $200,000 in false charges to the state. Hartigan said an unrelated scheme by a Highland Park doctor cost the state an additional $100,000.

The indictments allege that the laboratory and its former operator, Dr. Oscar Millare of Chicago, also paid up to $20,000 per month in kickbacks to 12 doctors.

Each doctor received kickbacks worth $400 to $1,000 a month, said a statement from Hartigan’s office, and they took various forms, including interest-free loans that were not repaid, secretarial salaries or cash payments. Manning said the scheme was in effect in parts of 1985 and 1986.

There was no answer Tuesday when the clinic was called, and there was no telephone listing for Millare in Chicago.

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