13 arrested in kickback scheme that generated millions in illegal profit

TRENTON (WABC) -- More than a dozen people have been arrested in what New Jersey authorities say was a scheme to pay illegal kickbacks to doctors in exchange for patient referrals.

Rehan "Ray" Zuberi, 45, owner of Diagnostic Imaging Affiliates of Hackensack, was arrested today as the ringleader of an alleged criminal enterprise that provided hundreds of thousands of dollars in kickbacks to medical practitioners in exchange for patient referrals to his facilities.

The scheme didn't end there, Zuberi and 12 other defendants were also accused of submitting fraudulent applications to the New Jersey Medicaid program and Department of Health, not paying income and franchise taxes among other illegal activities. In total, the scheme allegedly generated millions of dollars in illegal profit.

The scam reached far across northern and central New Jersey through Zuberi's network of diagnostic imaging facilities. Search warrants were issued for 10 DIA-owned facilities, DIA's billing company office and three homes in connection with the investigation. Many of Zuberi's assets were seized in the searches including $100,000 in cash and luxury cars including Lamborghinis and Ferraris.

Zuberi's bail was set at $1 million dollars. 12 others were also charged in the alleged scheme.

--Humara Paracha, 38, of Boonton Township, Rehan Zuberi's wife and president of DIA;

--Baber "Bob" Eskar, 49, of Pompton Lakes, chief operating officer of DIA and Zuberi's close associate;

--Rohit Gupta, 38, of Edison, President of American Imaging of Edison and owner of Medimax, a medical billing company that processed DIA's insurance claims; and

--Faisal Paracha, 30, of Fords, Rehan Zuberi's brother-in-law, and part owner/manager of American Imaging of West Orange;

The following individuals are allegedly officers/managers of the companies within Zuberi's enterprise and were charged as well:

--Nawab Zuberi, 73, of Boonton, Rehan Zuberi's father, and officer/director of DIA;

--Salman Siddiqui, 37, of Lake Hopatcong, Rehan Zuberi's brother-in law, and office manager of American Imaging of Montville;

--Felix Clarin, 44, of Florham Park, manager of American Imaging of Jersey City;

--Judith DeLeon, 50, of Bloomfield, manager of American Imaging of Hackensack;

--Natividad Urena, 31, of Clifton, manager of American Imaging of Union City.

Abid Syed, 37, of East Hanover, also was charged as the alleged financial controller of Zuberi's alleged enterprise. Thomas Grecco, 25, of Clifton, who worked in the accounting department of American Imaging of Hackensack, and Jose Lopez, 51, of Passaic, an employee of the organization, were charged for their alleged role in the scheme.

(The Associated Press contributed to this report)