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Several ways a New Jersey doctor convicted of health claims fraud can lose his license

In the course of my criminal defense practice, especially defending doctors accused of various crimes and violations, I have found that the next question after “what sentence will I receive?” is “what will happen to my license?” In fact, the disciplinary proceedings carried out by the New Jersey State Board of Medical Examiners is second on the list of nightmares facing a New Jersey doctor in trouble with the law. I have compiled some of the most frequently asked questions about licensing issues when a doctor is charged with a crime in New Jersey.

Q. What happens to a professional license when the practitioner is convicted of a second degree felony?

Pursuant to NJSA 2C:51-5A, a New Jersey health care professional, such as a physician, who is convicted of second degree felony health care claims fraud or a similar felony will permanently lose their license and will never may practice the profession. The only way to avoid this is for the defense to argue that such loss of license would be a gross injustice, negating the need to determine such conduct by others. The court may consider another period of license suspension, but not less than one year. If he’s lucky and the court doesn’t permanently lose his license right away, the award won’t be final for another 10 days so the prosecution can appeal it.

When a physician is first convicted of third degree health care claims fraud or a similar offense, there will be a mandatory license suspension for at least one year. The second conviction will cost you his license forever.

Q. How will the licensing agency be notified of the seizure or suspension?

A court will issue an order forfeiting or suspending the license immediately after pleading guilty or convicting the defendant, assuming any of this happens in New Jersey. The order is effective as of the date of conviction or guilty plea. If it is an out-of-state or federal conviction, or if the defendant lost their license in another state, the court will enter the forfeiture order at the request of the county attorney or the Attorney General.

Q. Can a license forfeiture order be stayed while the case is pending appeal?

Generally, a license forfeiture or suspension order will not be suspended until a conviction or a forfeiture or suspension order is appealed, unless the appellant’s attorney satisfies the court that there is a substantial probability of success as soon as at the bottom. If the appeal is successful and the conviction is reversed or the license forfeiture or suspension order is set aside, the court will notify the licensing agency within 10 days of the date of the reinstatement order. That does not guarantee that the license will be restored because the agency, such as the New Jersey Board of Medical Examiners, may decide to suspend or revoke the license on its own initiative.

Q. Can a licensing agency lose or suspend a professional license?

Absolutely! This can be done through a special request from the Attorney General. The situation may arise in a case where the issue of license confiscation or suspension is not even discussed in court when the practitioner pleads guilty or is found guilty. However, the fact that a court has not ordered the confiscation or suspension of the license does not prevent the licensing agency from doing so at its own expense. The decision may be based on the argument that the conduct leading to the conviction demonstrates that the person is unfit to hold the license or is otherwise responsible for a crime.

Q. Can a professional or medical license be reinstated in New Jersey?

NJSA 2C:52-27.1(a) establishes the procedure for restitution of confiscated professional licenses. If the conviction record is expunged, the convicted physician who lost his license as a result of the conviction may apply to the court for an order rescinding the court’s forfeiture order if the person can show that he is sufficiently rehabilitated. If an order to rescind the court’s disqualifying order is granted, the next step is to apply to the licensing agency to reinstate the license.

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