East Setauket man allegedly scammed more than $400K in insurance fraud

East Setauket man allegedly scammed more than $400K in insurance fraud

Photo from Suffolk County District Attorney’s Office

An East Setauket man faces a multicount indictment for allegedly receiving more than $400,000 through insurance fraud.

On Feb. 28, Suffolk County District Attorney Tim Sini’s (D) office announced the unsealing of a 70-count indictment against former health care worker Joseph Basile, 50. It is alleged he fraudulently received more than $400,000 through a health insurance fraud scheme where he would file claims for unperformed procedures and list a former employer, a colorectal surgeon, on the forms.

“This was an act of pure greed,” Sini said. “He used his knowledge of the health care insurance system to illegally pocket hundreds of thousands of dollars, money that would have otherwise been used to care for people who were sick and in need.”

Basile was charged with insurance fraud in the first degree, three counts of health care fraud in the second degree, two counts of grand larceny in the second degree, health care fraud in the third degree, grand larceny in the third degree, scheme to defraud in the first degree and 60 counts of criminal possession of a forged instrument in the second degree.

Basile was employed as an office manager for a private health care practice by a colorectal surgeon in Port Jefferson before the practice closed in 2013, according to the DA’s office. From January 2014 through July 2016, Basile allegedly fraudulently filed insurance claims for medical procedures, including colorectal surgeries, to Empire BlueCross BlueShield in excess of $3.8 million on behalf of himself and others, listing his former employer as the provider. The medical procedures had not been performed.

Basile then allegedly forged the signature of his former employer and deposited the checks into his own account. The more than $400,000 received was paid by both the insurance company and John T. Mather Hospital.

The former health care worker also allegedly filed fraudulent insurance claims on behalf of another individual whose health care is provided through Teamsters Local 1205’s welfare fund, according to Sini’s office. Basile allegedly stole more than $3,000 from the fund by filing false health care insurance claims.

Basile was released on $5,000 bond and is due back in court March 12. If convicted of the top count, he faces a maximum sentence of eight and one-third to 25 years in prison.

He is being represented by Legal Aid of Suffolk County attorney Kathleen Evers who could not be reached for comment.

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