U.S. Department of Justice

United States Attorney

District of Connecticut

PRESS RELEASE

February 19, 2009    

NEW HAVEN COUNSELOR PLEADS GUILTY TO HEALTH CARE FRAUD

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that STEPHEN KNEZEK, 62, of West Rock Avenue, New Haven, waived indictment and pleaded guilty today before Senior United States District Judge Peter C. Dorsey in New Haven to one count of health care fraud.

According to documents filed with the Court and statements made in court, KNEZEK owned and operated a psychotherapy practice located at 291 Whitney Avenue in New Haven .  In pleading guilty, KNEZEK admitted that, between October 2001 and September 2007, he submitted fraudulent claims to Anthem Blue Cross/Blue Shield, Medicaid, and other health insurance programs for psychological counseling sessions.  KNEZEK defrauded the insurance programs in two ways.  First, KNEZEK falsely submitted claims for sessions that,  in fact, were not rendered.  Second, although KNEZEK treated patients using group therapy, he billed these sessions as individual sessions, because health insurance companies pay more for individual sessions than for group therapy.  As part of his plea, KNEZEK admitted that he received between $200,000 and $400,000 as the result of his scheme.

Judge Dorsey has scheduled KNEZEK’s sentencing for May 6, 2009 , at which time KNEZEK faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

This investigation was conducted by special agents from Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Federal Bureau of Investigation’s Health Care Fraud Task Force.  The case is being prosecuted by Assistant United States Attorney David J. Sheldon and auditor Susan Spiegel.

Acting United States Attorney Dannehy commended  Anthem Blue Cross/Blue Shield insurance company for the critical assistance they provided to the investigation.