A former Bay Shore doctor, who was convicted of health care fraud and income-tax evasion totaling $3.5 million, was sentenced Wednesday to 65 months in prison.
U.S. District Judge Denis Hurley at the federal District Court in Central also ordered Frank Lobacz, 68, to make restitution of $727,000 to health-insurance companies and pay the Internal Revenue Service $2.8 million in back taxes. Hurley also ordered Lobacz to undergo mental treatment.
Lobacz was convicted in 2010 of fraudulently filing false health-insurance claims, looting his employee's pension plan and evading taxes from the scams, as well as on money he made in investing, according to officials.
The insurance fraud involved Lobacz filing and collecting false health-insurance claims on himself, his wife, his children and family friends, officials said.
Before he was sentenced, Lobacz told the judge that he was wrongfully convicted.
"I continue [to maintain] . . . my innocence in this case," he said. "I am not guilty of any of the charges."
Both Lobacz and his attorney, John Kaley of Manhattan, asked that he be sentenced to time served. "I have suffered enough," Lobacz said. They cited Lobacz's heart condition, his loss of his medical license and the fact that his wife divorced him and moved with his two young daughters to Florida.
Lobacz has been jailed for the past 32 months, which would mean that he would have to serve at most another 33 months in prison under Hurley's sentence.
Assistant U.S. Attorney Michael Canty had asked for the maximum sentence of 120 months, or 10 years in prison, saying Lobacz still has taken "no responsibility for his criminal conduct" and repeatedly lied when he took the witness stand at the trial in his own defense.
Lobacz "thought the rules didn't apply to him," said Canty, who prosecuted the case along with Assistant U.S. Attorney James Miskiewicz.
In his sentencing, Hurley said he was taking into account Lobacz's long history as a respected doctor, his service in the military and his obvious devotion to his daughters.
Lobacz told the judge he planned to appeal.
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