New York City Police Department

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Press Release | NO. 2005-019

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Press Release # 019
Tuesday, March 22, 2005

New York City Police Commissioner Raymond W. Kelly Announces The Arrest Of 13 Individuals Who Participated In Medical Fraud At Two Separate Clinics In New York City

New York City Police Commissioner Raymond W. Kelly today announced the arrest of 13 individuals who engaged in widespread medical fraud through two different clinics * one in Brooklyn and another in Manhattan. The two operations are estimated to have bilked insurance companies for millions of dollars. Several medical professionals were arrested today including doctors, physical therapists and a chiropractor. The investigation, dubbed "Operation Old School," combined the efforts of the Department's Fraudulent Accident Investigation Squad and the Transit Bureau, as well as members of the Manhattan District Attorney's Office, the Metropolitan Transit Authority and the New York State Insurance Fraud Bureau.

"Operation Old School" began as two separate investigations. One focused on Omni Medical Clinic located at 2044 Ocean Avenue in Brooklyn. The other investigated Premier Medical Clinic at 99 University Place in Manhattan. The investigation discovered that the unethical practices and illegal billing patterns were similar at both locations. It was subsequently revealed that the two facilities were operated by the same people.

Police Commissioner Kelly said: "Every single New Yorker understands the challenges of finding affordable health care. The two clinics we shut today victimized every citizen of New York by inflating the cost of
insurance premiums. I extend my congratulations to the Fraudulent Accident Investigation Squad and the Transit Bureau who worked together to end this illegal activity."

An integral part of this case was the use of undercover individuals who sought medical treatments from the facilities. The insurance companies provided by the undercovers were billed for several tests that were never performed. This provided a platform for investigators to follow the money trail and paint a more complete picture of how the duplicitous activity was carried out.

During this morning's takedown, three search warrants were executed to obtain billing and business records from the two clinics. This evidence is expected to result in more charges.

The following individuals were arrested this morning:

Isabella Pustilnik a/k/a Isabella Post * Co-operator
Abraham Pustilnik a/k/a Abraham Post * Co-operator
Inna Pustilnik a/k/a Inna Post * Psychologist
Jonathan Leibell * Chiropractor/Acupuncturist
Stuart Press * Physician
Paul Selinger * Dentist
Lena Marjorie Chase * Physical Therapist
Inga Eilenkrig * Social Worker
Bella Mamaladze * Receptionist
Michael Conrad * Physician
Gerardo Yanayaco * Physician
Victor Basbus * Physician
Galina Novofastovsky a/k/a Galino Novo * Manager

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