Gardy Vastey is also facing a lawsuit from two insurance carriers.
Irvington-based chiropractor indicted by a state grand jury and is facing a civil lawsuit. TRENTON -- Gardy Vastey, an Irvington-based chiropractor, has been indicted on nine counts of insurance-related fraud by a state grand jury in Trenton.
The indictment states that Vastey intentionally misdiagnosed his patients and prescribed unnecessary procedures so he could bill Geico Insurance Company.
The doctor is alleged to have perpetrated the fraud from July 30, 2010 to Oct. 20, 2010, violating the state's statutes and regulations and the New Jersey Fraud Prevention Act.
In a separate lawsuit filed in Somerset County Superior Court in January and subsequently transferred to Essex County, Allstate and Encompass Insurance companies also allege that Vastey and his Health Plus Chiropractic practice committed fraud against them, dating back to June 2011.
Raed Hattab, a physician at the New Jersey Arthritis and Back Pain Center in Elizabeth, is also named in the lawsuit along with registered nurse who worked with Vastey -- Dolores Ensley-Hawkins.
That case is pending. Allstate's headquarters is in Bridgewater, which is why the case was initially filed in Somerset County Superior Court.
RELATED: Lawsuit says chiropractor misdiagnosed patients, prescribed useless treatments
The state grand jury indicted Vastey on six counts of second-degree health care claims fraud. From Sept. 13, 2010 to Oct. 1, 2010, he allegedly made a "false, fictitious, fraudulent or misleading statement of material fact" in 19 billings or treatment records ranging from $50 to $1,070, representing he performed services.
Vastey was also indicted on second-degree insurance fraud. Between July 20, 2010 and Oct. 20. 2010, he's accused of committing five or more acts of insurance fraud with the aggregate benefit obtained or sought being at least $1,000.
He was also indicted on third-degree attempted theft by deception in the amount of $500 or more but less than $75,000 and fourth-degree falsifying or tampering with records.
The pending lawsuit contends patients who were assigned to Health Plus Chiropractic following motor vehicle accidents underwent fraudulent tests and treatment and were directed to New Jersey Arthritis and Back Pain Center, Hattab performed electrodiagnostic studies that were well below the acceptable standard of care and had no clinical value.
Dave Hutchinson may be reached at dhutchinson@njadvancemedia.com. Follow him on Twitter @DHutch_SL. Find NJ.com on Facebook.
