The Case

S E C T I O N S

The Case

 

For the past 25 years he has spent most of his life delivering babies at many of New York City's prominent hospitals at all hours. When off-duty he spent countless hours in his Park Avenue Office writing books, articles, advocating for both Women's Health Care Rights and Women's Reproductive Rights and seeing his patients.

Many of these insurance companies, owed Dr. Lauersen large sums of money for in-hospital baby deliveries. Instead of paying the doctor, they choose to attack him with claims of False Billing. This kept the money in the insurance companies escrow account to met State Law Insurance Requirements. Then in 1997 the government asked the F.B.I. to construct a criminal case against him to be prosecuted in Federal Court to prove this new legislation.The original case was only a civil manner which would have resulted in an administrative fine.

What was the motivation of the insurance companies? This answer is simple. Not to pay the bill. Accordingly; Dr. Lauersen's lost in excess of $3 million dollars just for in-hospital baby deliveries. Both the hospitals and the insurance companies were successfully able to permanently defer payment. How one might ask? By refusing all claim submissions by Dr. Lauersen because he was under investigation for insurance fraud. In October of 2002, the New York State Appeals Court ruled against all doctors, stating that all claims are time-barred and must be submitted with an 180 day window.

In the end the three Blue Cross/Blue Shield Former F.B.I. investigators who worked on Dr. Lauersen's case all ended up dead. The strangest thing is that there was no media coverage. It is a fact that Mr. Vincent LaBianca stated "I intend to make my career on Dr. Lauersen". On September 17th 2002, the 3 former F.B.I. investigators working on Dr. Lauersen's case for Blue Cross/Blue Shield were all killed. It is tragic that they survived the Sept. 11th tragedy only to die in a homicide-suicide that took place in mid-town Manhattan. You can find the related articles at the New York Daily News Archives. or click here for my google search. Interesting enough; Police Now Say No Love Triangle Was Involved In this Office Shootings although it was widely speculated initially. Were there emails on the confiscated computers concerning Dr. Lauersen's case? Is there something being covered up? Could it be insurance malfeasance at it's worst?

Dr. Lauersen had two trials, the first ending in a mistrial. The first trial was marred by the government's patient/employee witnesses being forced to seek limited immunity to escape prosecution before testifying. Additionally, Judge Pauley barred any patients with babies from the courtroom.

The bulk of the case was based on the testimony of Dr. Neil Ratner (former anesthesiologist for Dr. Lauersen). He was caught committing insurance fraud and arrested. This was the government's star witness. During the trial Dr. Neil Ratner admitted he deliberately made it his office policy to falsify insurance forms. There was never any corroborating testimony to support Dr. Ratner’s testimony in court.

The prosecution knew Ratner would be a shaky witness, so his questioning added up to having the doctor admit to dodging the draft, being unable to get into an American medical school, dealing drugs, and being "pretty stoned a lot of the time I was giving anesthesia,"; when he accidentally injecting himself with a paralyzing agent on the job. The doctor had to call 911 and the in-office surgery was stopped. The jury laughed at Dr. Ratner’s testimony; it was just too convoluted to be believed. This trial ended in a mistrial and Dr. Lauersen walked out a free man.

The second trial ended in a guilty verdict. Again most government witnesses were patients/employees testifying under limited immunity and of course the government’s star witness the “Stoned Doc”- Dr. Neil Ratner.

To an independent observer, whatever happened in that court room after the deliberation started was unusual to say the least. The jury deliberation started on a Friday. The judge pressed the jurors to attempt to finish by day's end. The jurors were unable to and asked for the weekend.

On Monday, returning to court, one found the jurors who had left smiling Friday afternoon frowning, impatiently. Someone in the jury pool had a death in the family and the jury was sent home.On Tuesday, the jury returned despondent and within a few hours; there was a verdict, guilty. The government then made a huge show of power by calling in armed Marshall's with shotguns and shackles before the courtroom was sealed and the verdict read. When the jury was polled, the jurors wept. Dr. Lauersen was freed on $5 Million dollars bail bond and left the courtroom, to return home. From smiles to tears, one must wonder what that was all about?

On March 21, 2001; Dr. Niels Lauersen reported to his probation officer and was arrested for applying for a second Danish Passport. Although Dr. Lauersen gave an affidavit concerning the second passport, it did not satisfy the court's requirements. Then the Danish Ambassador stated that Denmark had revoked his passport and would not issue him another. This still did not satisfactory the government. Instead Dr. Lauersen was held in NYC at the nation's highest security prison with terrorists; until his transfer to Allenwood Prison on Christmas Eve 2002.

Dr. Lauersen went to court with total confidence that the truth would prevail and he would be acquitted. Dr. Lauersen was sentenced to 70 months in prison for what appears to be an cover-up by the Insurance Companies to avoid making payment. But was this the whole story?

Not until six months later at Dr. Lauersen's Sentencing Hearing on October 15, 2001; did Judge William Pauley advise the court that he and his family had in excess of $100K+. in victim insurers stock in his financial portfolio. Mr. Shargel called for a mistrial and Judge Pauley recused himself from the case. Several days later the government persuaded the judge to remain on the case..And the appearance of judicial improprieties was established. Dr. Lauersen was sentenced to 70 months in prison.

To understand more about what happened to Dr. Lauersen click here to read about the Case Law



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