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Physician allegedly made exchanges in parking lot of Woodbridge restaurant

A physician who lives in Matawan was arrested Thursday on charges that he wrote fraudulent prescriptions for narcotics, including Percocet and Xanax, for Medicaid recipients in return for large sums of cash. The doctor met customers in a restaurant parking lot on Route 1 in Woodbridge.

Dr. Ki I. Song, 69, was arrested in Old Bridge during a motor vehicle stop on Matawan Road, a short distance from his home, state Criminal Justice Director Stephen J. Taylor said. Song was charged by complaint with second-degree distribution of dangerous drugs.

The charge is the result of an ongoing investigation by the state Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit and the Jersey City Police Department’s Special Investigation Unit. The investigation stems from a prior investigation by the agencies called Operation MedScam.

If convicted of the second-degree offense, Song would face 5 to 10 years in state prison and a criminal fine of up to $150,000.

“It is deeply troubling that a licensed physician is alleged to have been, in essence, dealing dangerous narcotics out of his car,” state Attorney General Dow Paula T. Dow said. “We will not tolerate health care professionals who abuse their licenses to turn an illicit profit.”

“This case is an offshoot of Operation MedScam, in which 32 people were convicted for their roles in a criminal network that distributed narcotics in five New Jersey counties,” Taylor said. “Working with the Jersey City police, our attorneys and detectives are pursuing any leads developed in that investigation, including these allegations involving Dr. Song.”

Song is a licensed hematologist and oncologist who formerly had a practice on Cottage Street in Jersey City. He now lists his residence as his medical office. It is alleged that Song has been writing fraudulent prescriptions for Medicaid recipients for narcotics, including the painkiller Percocet and the anti-anxiety medication Xanax. The prescriptions were not medically necessary. Both drugs are addictive narcotics that are frequently sold on the street and abused by addicts. Song filled out the prescription forms so the purchasers could fill the prescriptions at pharmacies.

Song allegedly would take orders by phone and meet prescription purchasers in the parking lot of a restaurant on Route 1 South at Gill Lane in the Iselin section of Woodbridge. It is alleged that Song would typically collect $100 in cash per completed prescription form. He would write each prescription for 90 pills. It is alleged that he most frequently wrote prescriptions for Percocet, but he also wrote them for Xanax. Song allegedly wrote the prescriptions without obtaining any patient history or performing any patient examination.

Song is being held in the Middlesex County Jail with bail set at $100,000.

Detectives executed search warrants today for Song’s residence and one of his cars, a Subaru Baja that he allegedly used to meet people who purchased prescriptions. Client records, approximately $35,000 in cash, several prescriptions prepared for delivery, and other evidence were seized from the home.

The attorney general’s office has filed a forfeiture action to seize his residence/office, the Baja and U.S. currency recovered Thursday as alleged proceeds or instruments of his criminal conduct. The seizures were valued at more than $500,000.

The matter also is being referred to the state Board of Medical Examiners for recommended action against Song’s license to practice medicine in New Jersey. His medical license is set to expire on June 30, if it is not renewed.

Because the charge is an indictable offense, the case will be presented to a state grand jury for potential indictment.

—TOM HESTER SR, NEWJERSEYNEWSROOM.COM