Grand Jury Hands Up Indictment on Local Physician and His Wife

COURT HOUSE — A Cape May County Grand Jury handed up on July 28 a 124-count indictment against former North Wildwood physician, John Costino, and his wife and office manager, Barbara Haas.
The indictment is the culmination of a nearly three-year investigation conducted by the Cape May County Prosecutor’s Office with the assistance of the National Insurance Crime Bureau.
Specifically, the indictment charges John Costino with 62 counts of health care claims fraud a crime of the second degree. The indictment also charges both John Costino and Barbara Haas, also known as Barbara Costino, with 62 counts of conspiracy to commit health care claims fraud also a crime of the second degree-crime.
Costino and Haas are alleged to have delegated patient care for physical therapy to unlicensed office staff to 62 different patients. Subsequently, Costino and Haas illegally billed and were paid by various medical insurance companies in an amount totaling $142,867 over a three and a half year period for the illegally performed physical therapy.
John Costino was originally arrested in September 2007 and charged with distribution of controlled dangerous substances, distribution of controlled dangerous substances within 500 feet of a public place and insurance fraud, a crime for which he has been indicted and is awaiting trial.
Those charges stem from a multijurisdictional investigation into the illegal distribution of prescription narcotics to two undercover police officers.
The New Jersey State Medical Board subsequently revoked Costino’s medical license for at least five years in the State of New Jersey and since December 2007, Costino’s North Wild-wood medical practice has been closed.
Prosecutor Robert L. Taylor commended the cooperative effort all of the agencies involved including the New Jersey Office of Insurance Fraud Prosecutor which resulted in the successful conclusion of this investigation.
Taylor commented that, “It is this kind of billing fraud that contributes to the high cost of health insurance.”
Persons convicted of a second degree crime may be incarcerated in the New Jersey State Prison for between five and ten years.