STATE — The New Jersey Division of Consumer Affairs has advised consumers that Midland Farms, located in Menands, New York, has voluntarily recalled certain milk products due to the potential of improper pasteurization.

Proper pasteurization heats milk in order to effectively eliminate all pathogenic bacteria, such as Listeria and Salmonella.  Recalled products were sold in New Jersey, New York, Connecticut, Massachusetts, and Rhode Island.

The recalled milk products are all sold in plastic containers and are marketed under the brand names Midland Farms, Corrado’s Market, Jersey Dairy Farms and Trade Fair Premium. They all possess the plant code 36-1661. The products also possess a black ink date code near the top of the container.  The products involved in this recall include:

Recalled Gallons:

• “Midland Farms Milk” with the date code SEP24
• “Midland Farms Reduced Fat, 2% Milk Fat Milk” with the date code SEP24
• “Midland Farms Low Fat, 1% Milk Fat Milk” with the date code SEP24
• “Midland Farms Fat Free Milk” with the date code SEP24
• “Corrado’s Milk” with the date code SEP24
• “Corrado’s Market Reduced Fat, 2% Milk Fat Milk” with the date code SEP24
• “Corrado’s Market Low Fat 1% Milk Fat Milk” with the date code SEP24
• “Corrado’s Market Fat Free Milk” with the date code SEP24
• “Jersey Dairy Farms Vitamin D Milk” with the date code SEP24
• “Trade Fair Premium Milk” with the date code SEP24
• “Trade Fair Premium Reduced Fat, 2% Milk Fat Milk” with the date code SEP24
• “Trade Fair Premium Low Fat, 1% Milk Fat Milk” with the date code SEP24
• “Trade Fair Premium Fat Free Milk” with the date code SEP24

Recalled Half-Gallons:

• “Midland Farms Milk” with the date code SEP24
• “Midland Farms Reduced Fat, 2% Milk Fat Milk” with the date code SEP24
• “Midland Farms Low Fat, 1% Milk Fat Milk” with the date code SEP24
• “Midland Farms Fat Free Milk” with the date code SEP24
• “Jersey Dairy Farms Vitamin D Milk” with the date code SEP24

Recalled Quarts:

• “Midland Farms Fresh Whole Milk” with SELLBY 9/24/10
• “Midland Farms Reduced Fat Milk” with SELLBY 9/24/10
• “Midland Farms Fresh Low Fat Milk” with SELLBY 9/24/10
• “Midland Farms Fresh Fat Free Milk” with SELLBY 9/24/10
• Recalled Pints:
• “Midland Farms Whole Milk” with SELLBY 9/24/10

Consumers who are interested in viewing the recalled products’ labels, can go to http://www.fda.gov/Safety/Recalls/ucm225225.htm

The Division has learned that the problem was detected by the New York State Department of Agriculture and Markets’ milk inspectors during an inspection on September 7, 2010 when they found a failure of pasteurization equipment at the Menands milk plant.  While the recalled products have not been found to be contaminated with any harmful pathogens, the company has determined to voluntarily recall all production as a precautionary measure.

Following New York’s announcement of this recall, the Division today contacted the New Jersey Department of Health to determine which food stores operating in New Jersey were known to have received deliveries of the recalled milk products.   According to the Department of Health, it has identified at least 38 stores in New Jersey which are known to have received the products and it has alerted local health departments to promptly inspect these stores to ensure that the affected products are not sold.   Consumers who have purchased any of the recalled products should return them to the place of purchase or discard them.

No illnesses have been reported to date to in connection with this problem. Consumers are warned not to use or consume the recalled products even if it does not appear or smell spoiled.

Consumers with questions may contact Midland Farms directly at 518-436-7038.

For more information about the recall, consumers can go to http://www.fda.gov/Safety/Recalls/ucm225221.htm

The Division of Consumer Affairs may be contacted at http://www.njconsumeraffairs.gov or at 1-800-242-5846 (toll-free within N.J.) or 973-504-6200.

NEWARK – JP Morgan Chase & Co. will pay a $1.1 million fine to settle a state investigation into the company’s sale of auction-rate securities, New Jersey officials announced today. The firm also agreed to repurchase approximately $91.25 million in securities from individual New Jersey investors.

The state had accused JP Morgan of selling the securities without adequately disclosing the risks of the auction-rate security market.

“New Jersey investors, whose ARS investments were frozen as a result of JPMorgan’s role in these auction market failures, will now regain access to their funds under terms of this settlement,” Attorney General Paula T. Dow said. “Our Bureau of Securities continues to work with other state regulators to protect investors and ensure the return of their monies.”

New Jersey has now entered into Consent Orders with six firms to resolve their conduct in the ARS market. These agreements have generated over $1 billion in repurchases of auction-rate securities for New Jersey investors.

“From the first failed ARS, the Bureau of Securities has sought to secure the necessary relief for investors stuck with these unsuitable and illiquid products,” said Marc B. Minor, New Jersey Bureau of Securities chief. “JPMorgan has agreed to do what’s right by offering to repurchase its clients’ positions, and I fully expect other firms that employed similar practices in marketing and selling these securities in New Jersey to do the same.”

Gov. Chris Christie

STATE — New Jersey Gov. Chris Christie will headline a $100 per person fundraising event for former Iowa Gov. Terry Branstad in Des Moines on Oct. 4.

Since 1972, the Iowa caucuses have been the first major electoral event of the nominating process for President.

Christie, elected less than one year ago, has quickly gained a reputation as a national leader within the Republican Party.

“I’m excited to welcome Governor Christie to Iowa,” said former Iowa Gov. Terry Branstad. “He has been a pioneering leader in New Jersey with regard to cleaning up the state’s budget and again putting his state on the right track. I’m happy to have his support and am looking forward to a great event.”

MONROE – Lt. Governor Kim Guadagno and Bill Baroni, deputy executive director of the Port Authority of New York and New Jersey, visited Monroe Township Wednesday to present a piece of steel from the World Trade Center for inclusion in their public memorial to honor the victims and remember the attacks of Sept. 11, 2001.

During the rescue and recovery efforts at the World Trade Center following the attacks of Sept. 11, 2001, artifacts were identified among the wreckage and preserved for their historical significance. Stored at Hanger 17 at JFK Airport, these artifacts include various pieces that have been cataloged by a professional curator to ensure they were kept as close as possible to their original condition.

“As we mark the 9th anniversary of September 11th, I’m honored to present the Monroe Township Fire Department with a piece of steel from the World Trade Center to be part of their memorial,” said Guadagno. “I know this memorial will stand as lasting testaments to the more than six hundred New Jerseyans who died at the World Trade Center as well as to the hundreds of New Jersey citizens who so bravely assisted in the rescue and recovery efforts.”

Baroni noted, “The steel recovered from the World Trade Center after Sept. 11, 2001 is being distributed to police departments, fire departments, municipalities and other community organizations as a public display to the memory of 2,752 victims, including 343 New York City firefighters, 37 Port Authority police officers, and 23 New York City police officers. These historically important artifacts will help generations remember and honor the past as we work every day to rebuild together.”

Jason Alderman

By Jason Alderman

Sometimes I miss the days before cell phones, email and voicemail. Sure, they’ve simplified our lives in many ways – remember how frustrating it was trying to reach people before answering machines?

On the downside, though, not only do we often feel compelled to be accessible 24-7, but it’s expensive. After factoring in Internet service and cable or satellite TV, you might be paying thousands of dollars a year to keep your family wired and wireless.

Here are a few cost-saving tips that might help:

Examine your home phone bill for services you may have signed up for but aren’t using, such as call waiting, call forwarding or caller ID. Dropping them could save $100 a year or more, depending on your plan.

If you have good cell phone reception at home, try using your cell for long-distance calls. But be sure to stay within your monthly minute allowance or your bill will skyrocket. When in doubt, check your remaining minutes at your carrier’s website or by calling or texting their “remaining balance” code.

More and more folks are dropping their land lines altogether, relying solely on cell phones. Just be sure it’s always fully charged – beware of extended power failures. And note that in an emergency, 911 operators may not be able to track your location if you’re unable to speak, as they can with a land line.

Another possible route is using a service that let you make free or low-cost calls (often, including international calls) using your Internet broadband connection. Some popular versions include Skype, Vonage and Google Voice. You’ll need to buy certain equipment upfront to enable the connection and monthly and/or per-minute charges may apply.

In addition, many cable TV carriers offer competitively priced digital phone service via their broadband connection. Be aware that with either of these types of broadband phone service you risk losing coverage during power failures, so it’s wise to have a cell phone as backup.

You may be able to lower your overall communications bill by bundling home phone, cell phone, TV and Internet services together through one carrier. Plus, it’s convenient to pay only one monthly bill. Just make sure you’re not being restricted on services you want or overpaying for those you don’t; and do the math on rates after the introductory period, if one applies.

A few more tips:

• Watch for offers made to new customers and ask to be given the same deal – or threaten to take your business elsewhere.
• Using a prepaid phone card for long-distance calls from home may be cheaper per minute than coverage through your phone company.
• Ask if your employer has a cell phone plan discount for employees.
• Explore family calling/texting plans in which you can share minutes among family members.
• Add up your family’s monthly calling and texting charges and see if the carrier’s unlimited minutes plan is more affordable.

Comparing all these options may seem like a lot of work, but you could save hundreds of dollars a year by choosing the right plans. Plus, you may just realize that you’re wasting too much valuable time on the phone, watching television and surfing the Internet.

Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney

Dear EarthTalk: Is there any way to harness volcanic energy to meet our electricity and other power needs? — Antonio Lopez, Chino, CA

The short answer is yes: Heat generated by underground volcanic activity can and has been harnessed for electricity for over 100 years around the world. Utilities can capture the steam from underground water heated by magma and use it to drive the turbines in geothermal power plants to produce significant amounts of electricity. Getting at the sources is not so easy or cheap, though, as it requires drilling into unstable sections of the Earth’s crust and then harnessing the heat energy miles below the surface.

Despite these difficulties, volcanic geothermal energy reserves account for about a quarter of Iceland’s energy consumption (with the rest taken up by another clean renewable resource, hydropower dams). According to statistics from the Geothermal Energy Association, the Philippines is also a big user of geothermal power: About 18 percent of that country’s electricity comes from underground volcanic sources. And in New Zealand, geothermal accounts for about 10 percent of total electricity consumption.

But believe it or not, the United States is actually the world’s largest producer of volcano-derived geothermal electricity, but still only derives less than one percent of its total power from such sources. California and Nevada are the leaders in this nascent form of renewable energy domestically, but promising efforts are also underway in Oregon, Utah, Alaska and Hawaii. Some analysts believe that the U.S. has enough geothermal capacity to provide 20 percent or more of the nation’s electricity needs.

Against the backdrop of diminishing oil reserves, tapping volcanic energy has become a high priority for some other regions as well. The war-ravaged East African nation of Rwanda is hoping to provide power for its people by harnessing the energy from volcanic gases at Lake Kivu, one of the continent’s largest lakes, covering some 1,000 square miles. The lake is one of three known “exploding” lakes subject to violent and sometimes deadly “overturns” triggered by volcanic activity. Methane and carbon dioxide from an adjacent volcano mix methane and carbon dioxide into the lake, making it a veritable tinder box, threatening the lives and homes of some two million people in the region.

In response to the risk—and also to produce energy—the Rwandan government has started using a large barge to suck up water and extract the methane gas therein. The methane is then used to fire the gas-powered Kibuye power plant. Already the system is producing 3.6 megawatts of electricity—some four percent of Rwanda’s total power supply. Within a few years, project backers hope to be generating between 50 and 100 megawatts of power from the operation. Extracting the methane also significantly reduces the risk of explosions, thus providing a measure of safety for area residents.

Humans have barely put a dent in the amount of power that can be captured from volcanic activity, but analysts expect to see much more of this form of power coming online over the next few decades. The U.S. Geological Survey refers to this phenomenon as the “plus side of volcanoes.” Environmentalists and others are hopeful that volcanic geothermal energy can become a major player in meeting a significant portion of our energy needs in our increasingly carbon-constrained world.

CONTACTS: Geothermal Energy Association, www.geo-energy.org U.S. Geological Survey, www.usgs.gov.

Dear EarthTalk: When we talk about “endangered species” we usually think of animal species, but someone recently told me that there was a worldwide crisis pertaining to the extinction of plants. Can you enlighten? — Max Blanchard, East Islip, NY

We may not realize it, but the health of the plant kingdom is crucial to the health of the planet and the animal life (which includes humans) it supports. “Through photosynthesis, plants provide the oxygen we breathe and the food we eat and are thus the foundation of most life on Earth,” reports the Center for Biological Diversity, an Arizona-based nonprofit dedicated to securing the future for endangered plants and animals throughout the world.

“Unlike animals, plants can’t readily move as their habitat is destroyed, making them particularly vulnerable to extinction,” says the Center. Habitat destruction—just one of the threats plants face—can lead to an “extinction debt” whereby even some plants that are plentiful now could disappear over time by being unable to disperse to new habitat patches. And global warming is already starting to exacerbate such problems. “With plants making up the backbone of ecosystems and the base of the food chain,” says the group, “that’s very bad news for all species, which depend on plants for food, shelter and survival.”

A 2009 report by the UK-based nonprofit, Plantlife, found that 15,000 of the 50,000 or so species of wild plants known for their medicinal qualities in traditional remedies are being overexploited and are potentially headed for extinction. The group says the fact that most people around the world—including some 80 percent of all Africans—rely on herbal medicines obtained primarily from wild plants underscores just how serious a problem a mass extinction of wild plants could be for humanity, let alone for the environment. Commercial over-harvesting does the most harm, though pollution, competition from invasive species and habitat destruction all contribute. “Commercial collectors generally harvest medicinal plants with little care for sustainability,” Plantlife reports, adding that shortages already exist in China, India, Kenya, Nepal, Tanzania and Uganda.

Another group, the International Union for the Conservation of Nature (IUCN), which compiles and maintains the famous “Red List” of endangered species around the world, found that a whopping 70 percent of the 12,000-plus plant species it has evaluated to date are threatened with extinction—despite the fact that each year about 2,000 new plants make themselves known to science. Of course, the organization only evaluates plants that are rare or have suffered major declines.

Meanwhile, researchers in the UK estimate that up to 33 percent of all flowering plants worldwide are threatened with extinction. “That percentage reflects the global impact of factors such as habitat loss,” says Lucas Joppa, the study’s lead author, who adds that climate change could increase the toll.

This worldwide threat to plants is just part of a larger biodiversity crisis, and the United Nations has declared 2010 “The International Year of Biodiversity” to raise awareness and encourage action to help stem the tide. The project’s website features listings of celebrations taking place around the world as well as resources for those who want to help spread the word and be part of the solution.

CONTACTS: Center for Biological Diversity, www.biologicaldiversity.org; Plantlife, www.plantlife.org.uk; IUCN, www.iucn.org; International Year of Biodiversity, www.cbd.int/2010.

SEND YOUR ENVIRONMENTAL QUESTIONS TO: EarthTalk®, c/o E – The Environmental Magazine, P.O. Box 5098, Westport, CT 06881; earthtalk@emagazine.com. E is a nonprofit publication. Subscribe: www.emagazine.com/subscribe; Request a Free Trial Issue: www.emagazine.com/trial.

TRENTON- Department of Environmental Protection Commissioner Bob Martin today issued an expanded, statewide drought watch, asking all state residents to voluntarily conserve water due to continued hot and dry conditions that have persisted all summer, and are taxing reservoir, stream and groundwater levels.

The decision to expand an existing drought watch that had been in place for the state’s five northeastern counties is a result of record high temperatures and water demands, combined with near-record precipitation lows.

“The drought is deepening and showing no sign of letting up soon, which has made it imperative to take this step now,” said Martin. “Our scientists have been closely monitoring the water situation and feel this is a necessary measure.”

“What the entire state really needs is several days of heavy, soaking rain. But until we get some weather relief, we’re asking all state residents to join in an effort to preserve our precious water supply, to more carefully use water and voluntarily reduce unessential use.”

Taking steps such as limiting limit lawn watering, cutting back on at-home car washing, and just doing the laundry when the machine is full can save millions of gallons of water daily and help get us through this situation, said the commissioner.

A drought watch is a response to deteriorating water supply conditions, with a goal of raising public awareness and formally alerting all water suppliers to the situation, to help preserve existing supplies and balance reservoir storage.

The DEP is not issuing a formal drought warning at this time, which could initiate mandatory steps such as water transfers between regional water supply systems. Instead, the department is asking residents across the entire state to be aware of the situation and use water more carefully. The goal is to moderate water demand through voluntary conservation.

New Jersey has had no significant rainfall since more than five inches of precipitation inundated a portion of the northeast sector of the State nearly three weeks ago. Some areas have received 25 percent or less of expected summer rainfall. As a result, precipitation indicators have dropped to the severely dry category in the state’s central, coastal north and coastal south regions.

Stream flow levels also declined to the severely dry category in the coastal north region. Only in the coastal south region are stream flows moderately dry.  Hot, dry weather continues to stress shallow groundwater and is beginning to impact some private wells.

“It’s a matter of the state’s faucet being turned off at the same time we’ve had little relief from the heat,” said Steve Doughty, research scientist in the DEP’s Division of Water Resources Management. “So, every gallon of water we can save now will extend our supply in case a return to normal weather conditions occurs later than we hope.”

According to State Climatologist David Robinson of Rutgers University, New Jersey is experiencing its warmest summer (June-August) on record since weather data has been kept starting in 1895.  This followed the warmest spring on record. Every month since March has ranked in the top 10 of all time for heat, with August ranked 10th, July ranked 2nd and June as the first hottest month in the past 105 years.

At the same time, below average rainfall has accompanied the heat. The preliminary average for summer precipitation stands at 8.35 inches statewide, making it the 10th driest summer of all time and the driest summer since 1966.

Average statewide rainfall in August was just 2.42 inches, or 2.14 inches below normal, making it the 15th driest August on record. But rainfall levels have varied dramatically across the state. More than 8 inches fell this summer at the Charlotteburg reservoir in northern Passaic County while less than one-half inch of rain fell on most of Burlington County.

The following are some suggested water conservation tips:

• Do not over-water lawns and landscaping. Two times per week for 30 minutes in morning or late evening is sufficient. Use a hose with a hand-held nozzle to water flowers and shrubs.
• Turn off the faucet while brushing teeth and shaving.
• Run washing machines and dishwashers only when full.
• To save water at home, fix leaky faucets and pipes.

More information on water conservation and water supply status can be found at www.njdrought.org/ideas.html and www.njdrought.org/status.html

Gov. Chris Christie

TRENTON – Gov. Chris Christie today unveiled a series of ethics reform measures intended to promote accountability and maintain the integrity of office holders and employees and the electoral process at all level of government.

The ethics plan released today represents the first specific policy proposals of a broader initiative to reform New Jersey. Additional reforms to address the areas of pension and benefits, economic development and job creation, and education are expected to be released in the coming weeks.

Among the proposals advanced today by Christie during a Town Hall meeting in Raritan Township:

• Omnibus ethics legislation which ends dual government employment and dual office holding, requires forfeiture of pensions by convicted public officials, prohibits use of campaign funds for criminal defense costs, and redefines conflict of interest for legislators by making recusal mandatory for direct financial conflict (no more self-evaluation to determine whether the member “feels” there is or is not a conflict) and strict disclosure of legislative conflicts of interest.

• A comprehensive legislative reform package which imposes a uniform standard for awarding contracts at all levels and branches of government in New Jersey, and expands the reach of the pay-to-play law to make public labor unions subject to the same contribution and disclosure obligations as other entities doing business with the state. The bill also restricts the practice of “wheeling,” or the transfer of political donations to circumvent campaign financing laws.

“Ethics reform in New Jersey has been a patchwork of half measures that failed to be fair and uniform, left gaping loopholes for special interests to maneuver through and fell far short of what the public demands,” Christie said. “These measures are about good, open and honest government, where the playing field is level for everyone and the rules are unambiguous.”

A day after his inauguration, Christie signed an executive order which limited political donations by labor unions that had contracts with the state, saying that unions should be subject to the same restrictions as corporations or individual donors. That executive order was overturned in-part by a state appeals court which — without passing judgment on the intent of the executive order — said legislation would be required to enact the restrictions.

“This is undeniably a matter of important public policy,” Christie said. “This pay-to-play reform package strengthens New Jersey’s existing laws to protect the integrity of our electoral process in a way that preserves the public’s confidence in the system. Special interests should not be in a position of deciding elections by flooding the political process with money.”

The pay-to-play reform proposal also restricts the practice of “wheeling,” by eliminating many of the exemptions on contribution limits for county or municipal political committees. The proposal – which has strong supported from the Election Law Enforcement Commission – would curtail the unlimited transfer of campaign money between committees and from committees to candidates in different parts of the state, which can unfairly impact local races.

Furthermore, the governor’s pay to play reforms address the “Fair and Open Contract” exception by extending pay to play requirements to contributions made to legislators and county or local elected officials. Under the proposal, if a business makes a reportable contribution to any of those individuals, the business cannot receive a contract in excess of $17,500 — as the law currently applies only to political contributions to a governor.

NEWARK – Federal agents arrested three current and former Continental Airlines employees who have been charged with participating in an alleged conspiracy to smuggle cocaine into the United States through Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced Tuesday.

Yunior Lopez, 25, of Elizabeth; Amaurys Caminero, 29, of Linden; and Kerlwin Taveras, 27, of Bronx, N.Y., were each charged with one count of conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine, authorities said.

The arrests were precipitated by the latest seizure of cocaine – over 47 kilograms – at Newark Liberty International Airport over Labor Day weekend, according to authorities. Lopez and Caminero were arrested at the airport Sept. 4 and Sept. 5, respectively. Taveras was picked Monday night in the Bronx. All three defendants were detained following an appearance Tuesday afternoon before United States Magistrate Judge Claire C. Cecchi in Newark federal court.

According to the criminal complaints filed Tuesday, Lopez and Caminero are employed by Continental Airlines as baggage handlers at Newark Liberty International Airport, while Taveras is a former baggage handler for the airline.

Lopez, Caminero, and co-conspirators, including other Continental employees, allegedly conspired to smuggle cocaine into the United States through the airport. The cocaine was put aboard flights in the Dominican Republic, usually packaged in gym bags with hand-written luggage tags that indicated they had been checked at the departing gate.

Once the planes landed in Newark, Lopez, Caminero, and others allegedly arranged to remove the cocaine from the airplanes, take it from the airport, and facilitate its distribution in the New Jersey and New York areas.

Over the course of the investigation, law enforcement officers intercepted numerous communications in support of the alleged conspiracy and made five separate seizures of significant quantities of cocaine, totaling about 125 kilograms.

Fishman said, “Criminals may think that having inside operators at airports will save them from detection, but they underestimate our commitment to and focus on the integrity of those who work there. We will continue to come down hard on anyone who tries to compromise the security of the planes on which we fly or to bring drugs into the neighborhoods in which we live.”

“Regardless of their role in a drug trafficking organization, persons engaged in the illegal importation of narcotics into the United States through our nation’s airports are on notice that ICE will use all of its investigative resources to disrupt and dismantle these criminal enterprises, large or small, and bring them to justice,” said Peter T. Edge, special agent in charge of Immigration and Customs Enforcement’s Homeland Security Investigations in Newark.

If convicted, each of the defendants faces a mandatory minimum penalty of 10 years in prison, and a maximum potential penalty of life in prison and a $4 million fine, authorities said.

NEWARK – A doctor with a practice in Elizabeth was arrested Tuesday morning on charges that he conspired to commit Medicaid fraud, U.S. Attorney Paul J. Fishman announced.

Yousuf Masood, 46, of Warren allegedly obtained at least $1.8 million in fraudulent payments from Medicaid by allegedly billing for services provided by fake physicians, Fishman said.

The criminal complaint alleges that Masood used unlicensed individuals to treat patients in his Elizabeth office and billed Medicaid as if he had provided the services – even at times when he was out of the country. Yousuf Masood is charged along with his office manager and wife, Maruk Masood, 42, with conspiracy to commit health care fraud and money laundering offenses.

Three other individuals: Hamid Bhatti, 32, of Rahway; Hakim Muta Muhammad, 30, of Newark,; and Carlos Quijada, 30, Hawthorne, are charged with conspiracy to commit health care fraud for allegedly pretending to be doctors during patient visits.

The Masoods were arrested at their home Tuesday morning by special agents of the Federal Bureau of Investigation and the Drug Enforcement Administration. Muhammad and Quijada were arrested Tuesday morning at the Elizabeth practice.

According to the complaint, Yousuf Masood and Maruk Masood employed Bhatti, Muhammad, and Quijada at Yousuf Masood’s office in Elizabeth, paying them a wage as low as $17 an hour. Patients with appointments at the office regularly met only with Bhatti, Muhammad, or Quijada – none of whom is licensed to practice medicine in the State of New Jersey, but who allegedly introduced themselves as “doctor” to patients.

The office staff also allegedly referred to them as “Dr. B.,” “Dr. Q.,” “Dr. Bhatti,” “Dr. Quijada,” or “Dr. Muhammad” in the presence of patients. Though they knew Bhatti, Muhammad and Quijada were not doctors, Yousuf Masood and Maruk Masood allegedly billed Medicaid as if Yousuf Masood had provided the services they provided to patients. Medicaid was allegedly billed for numerous services supposedly rendered by Yousuf Masood in New Jersey while he was in the Dominican Republic, Europe, and Bermuda.

According to individuals employed by the office, approximately two-thirds or more of patients with appointments at the office saw Bhatti, Muhammad, or Quijada and not Yousuf Masood, the complaint states.

In addition to the millions of dollars Yousuf Masood collected from Medicaid for services he allegedly provided to patients, Yousuf Masood was the top prescriber of drugs to Medicaid patients in New Jersey in 2009, prescribing more than $9 million in Medicaid drugs that year. The next-highest prescribing doctor in New Jersey prescribed less than $6 million, the complaint states.

At least $1.8 million was paid to the defendants by the New Jersey Medicaid program based on alleged fraudulent billings. After Medicaid directly deposited the money into a bank account belonging to Yousuf Masood, the money was transferred to various other accounts belonging to Yousuf and Maruk Masood.

For example, on March 30, a wire transfer for over $1.4 million was sent from the direct-deposit account to an attorney trust account, after which that same money was used, on March 24, to purchase a Basking Ridge property, the complaint states. On May 12, a wire transfer in the amount of $137,989 was sent from the direct-deposit account to an account maintained by an entity representing the Federal National Mortgage Association, and was then used to purchase a property in Davenport, Fla.

If the Masoods are convicted of the money laundering conspiracy charge, the properties will be forfeited to the United States, authorities said. The government also executed nine seizure warrants pertaining to millions of dollars in funds allegedly obtained as a result of the alleged health care fraud and held in various accounts controlled by the defendants.

Fishman said, “The defendants are charged with an unconscionable fraud which not only ripped off a vital government program, but exposed patients to treatment by people without medical licenses. In order to perpetrate the scheme, the practice’s billings brazenly claimed one doctor saw many patients at once – even when he was across the ocean. This case is an example of the type of criminal activity our new Health Care and Government Fraud Unit is designed to combat.”

“The concerns here are many,” said Michael B. Ward, special agent in charge of the FBI’s Newark Division. “Unsuspecting patients were placed at risk through deceit and substandard medical care, while taxpayers were being defrauded of millions of dollars. The fact that such a fraud could be accomplished for as little as $17 an hour serves as a reminder for the need for law enforcement to maintain focus in pursuit of health care fraud matters.”

John G. McCabe, acting special agent in charge of the Drug Enforcement Administration’s New Jersey Division said, “This investigation is another example of DEA’s Tactical Diversion Squad and our law enforcement partners working towards the same goal of protecting the public from unscrupulous members of the medical profession that through fraud and illegal activities cost the taxpayers billions.”

If convicted of the conspiracy to commit health care fraud charge, each defendant faces a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The Masoods each face an additional maximum potential penalty on the conspiracy to commit money laundering charge of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.