NJ arrests more than 12 in alleged kickback scheme

NEWARK, N.J. -- 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.

New Jersey's attorney general says the owner of numerous MRI centers operated an enterprise that allegedly generated millions of dollars in illegal profits by submitting fraudulent applications to Medicaid, despite being barred from the program due to a previous conviction.

Prosecutors say alleged ringleader Rehan "Ray" Zuberi, used his business, Diagnostic Imaging Affiliates (DIA) of Hackensack, to pay more than $300,000 in bribes to medical practitioners in exchange for them referring patients to him for expensive diagnostic tests.

The 45-year-old Boonton Township resident was arrested Tuesday and is being held on $1 million bail. It's not known if he has a lawyer.