As a New Jersey commission investigates addiction-treatment abuse, a Mullica Hill rehab owner denies wrongdoing

A New Jersey addiction rehab owner declined claims by state detectives that he overbilled to pay for high-end cars and trucks and individual charge card charges and to broaden his organization of sober houses.

Nicholas DeSimone, the owner of Kingsway Recovery in Mullica Hill, stated at a hearing Wednesday that he was not thoroughly included in the day-to-day running of his organization and that his business has actually run aboveboard. He stated that he had actually not overbilled insurance business and that detectives had actually misinterpreted what he referred to as complex, however genuine, billing practices.

DeSimone was subpoenaed to appear prior to the New Jersey State Commission of Examination at a comprehensive hearing in October however rather submitted a movement to quash the subpoena and did not go to. The commission then submitted a contempt movement in court, and he affirmed under oath Wednesday.

The commission anticipates to release a report on abuse in the addiction-treatment market within the next a number of months.

” LEARN MORE: In New Jersey, detectives state they are discovering abuse in the state’s flourishing rehab market

In October, state detectives stated DeSimone and his spouse, Michelle, had actually funneled additional money from Kingsway into a sober house operation called Graceway, owned by Michelle.

Sober houses, where people going through addiction treatment frequently remain, can not bill insurance business. So, detectives stated, the DeSimones moneyed their own sober houses in order to convince homeowners there to pick Kingsway for treatment.

On Wednesday, DeSimone stated that Kingsway and Graceway ran as different business and that he had no participation in his spouse’s organization. He stated that staff at Kingsway likewise referred customers to other sober houses, although detectives have actually stated that almost all of its customers lived at Graceway.

The DeSimones presumably invested cash they ‘d amassed from overbilling to fund a extravagant way of life and more sober houses, detectives stated– more than they would have been able to pay for otherwise. DeSimone stated he had just ever used cash from a Kingsway checking account to purchase a watch.

Detectives had actually likewise flagged a number of deals he made to individual accounts, each amounting to precisely $9,000. That amount is simply under federal bank deal reporting requirements, and detectives called it a possible sign of cash laundering or tax evasion.

However DeSimone stated he merely desired to “keep [his deposits] uniform.”

” LEARN MORE: Camden addiction center to pay millions in settlement over declared kickback plan

As for overbilling, he stated, a third-party business was used to manage billing, and it appeared to charge two times for the very same services on the insurance costs that detectives considered suspicious.

Lawyer Gilbert Brooks, who is representing DeSimone, stated detectives misinterpreted which services various medical billing codes were covering. DeSimone stated that he does not examine Kingsway’s individual billing declarations, and never ever has.

A previous Kingsway worker likewise informed detectives previously this year that higher-ups at the treatment center were motivating staffers to falsify favorable drug tests for customers in order to keep their insurance business paying for treatment.

DeSimone informed the committee, nevertheless, that he contracted with a laboratory business to gather urinalysis samples from his customers, and that there was “no chance” a test might have been falsified.

” LEARN MORE: As meth overdoses surge in N.J. and Pa., supporters call for much better treatment for people who use stimulants

DeSimone consistently stated throughout the hearing that day-to-day operations at Kingsway, which deals with about 30 to 40 patients at a time, are mostly dealt with by his director of operations. While they speak a number of times a day, DeSimone stated, he does seldom check out the facility itself.

He informed the commission that he thinks about addiction treatment a calling and is himself in recovery from an addiction to alcohol.

” That is why we take claims of misbehavior so seriously,” he stated, and included that he invites oversight and regulative modifications that help patients.

Commission Chair Tiffany Williams-Brewer stated she was pleased to hear DeSimone’s statement. “It’s assisting to even more our examination, which will continue,” she stated.

Leave a Comment

Our trained counselors are here to help answer anything.

Have Questions?