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Chiropractor fraud charges

Chiropractor fraud charges - Friday, February 20, 2009 at 6:44PM EST

A popular Lackawanna County chiropractor is facing insurance fraud charges.

Police say Stephen Paranich defrauded the health insurance system for tens of thousands of dollars.

He runs his practice, Paranich Wellness Center, in Old Forge.

Investigators say Dr. Stephen Paranich defrauded Blue Cross of Northeastern Pennsylvania and maybe more.

Lackawanna County detective Myles Walsh says, "We felt we wanted to get in here right now just to stop the blue cross involvement. Once we get other health insurance companies involved we feel the amount is going to go up."

Right now, investigators say Paranich schemed roughly 35 thousand dollars from blue cross.

He would allegedly treat a patient, then submit reimbursement paperwork for services he didn't provide.

He also would charge for what detective's call an impossible work day.

"Charges for more than 8 hours he works here. He bills for 10, 12, 14 hours worth of service than he just can not do in an 8 hour day. He's also billed for numerous services over and over again on the same patients," says Walsh.

Paranich apparently also filed 131 claims under an employee's name on maternity leave.

Claims under another doctor at his office, Russel Buffalino were submitted.

But investigators say Buffalino wasn't qualified to perform work eligible for reimbursement.

Paranich was arraigned on insurance fraud charges Friday morning.

He'll be back in court next week.
 


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