Fraud probers seize chiropractor’s files in Old Forge

Published: 2009-04-11 20:07:50
Author: KIMM R. MONTONE, Scranton Times, February 21, 2009

OLD FORGE — Authorities on Friday seized computer records and medical files of a borough chiropractor suspected of insurance fraud.

Stephen R. Paranich, 50, of 38 Sharon Drive, Moosic, allegedly bilked Blue Cross of Northeastern Pennsylvania out of $39,450 by overbilling and submitting fraudulent claims, according to court documents.

At times, he charged the Wilkes-Barre-based insurer for 10 to 12 hours on days when his business was open only eight hours, said Myles Walsh, administrator for the Northeast Pennsylvania Insurance Fraud Task Force of the Lackawanna County district attorney’s office.

“It’s called ‘the impossible day.’ It’s for billing more treatment hours than are in (a work) day,” he said.


Claims were submitted for services rendered by Amy Sanquedolce, a physical therapist, while she was on maternity leave, according to an affidavit.

Claims also were submitted for physical therapy and billed under the name of Dr. Russell Bufalino, who is an orthopedic surgeon without credentials to perform physical therapy, according to the affidavit.

There also was allegedly $5,605 in claims paid for services to Mr. Paranich’s wife, Rae Marie Venarucci, who authorities say lives in Arizona.

Mrs. Sanquedolce, Dr. Bufalino and Ms. Venarucci have not been charged.

Mr. Paranich’s arrest comes after a seven-month investigation into Paranich Wellness Center/Comprehensive Medical Network by the task force. Investigators took records and files for more than 50 patients from the office at 102 N. Main St.

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