A partner in the Source Institute for Human Performance, a central New Jersey-based company that provided exercise, strength conditioning, and coaching services to private schools, has pled guilty to defrauding insurance companies.
According to federal district attorney Paul J. Fishman, David Nogaki, 42, of North Brunswick admitted to collecting more than $200,000 from insurers for performing physical therapy services despite the Source Institute not having any licensed physical therapists on staff.
Nogaki told the court that between 2008 and 2011, he conspired to falsely claim that Source was providing physical therapy to clients. The providers, AmeriHealth, Aetna, Horizon, UnitedHealthcare, and NJM, would only cover physical therapy if a doctor or a physical therapist had direct contact with patients.
According to the company’s website, it had relationships with the Pennington School, George School, and the Cherry Valley Country Club. Fishman said Source provided services to students, coaches, and faculty, for which it billed insurers as “physical therapy.”
Nogaki, who faces a sentence of up to 10 years, was the only one charged. August Leming, a fitness advocate and seminar leader and president of the Source Institute, did not return calls seeking comment.