East Orange Clinic Owner, Employee Charged In Medicaid Fraud Case

New Jersey officials announced that the owner of a women’s health center in East Orange and one of her employees have been indicted for allegedly performing medical procedures without proper licenses and filing false claims to Medicaid.

Acting Attorney General Jennifer Davenport said Monday that Esney Davis-Sharpe, 63, of East Orange, and Nataliya Lushchak, 48, of Lower Gwynedd, Pennsylvania, face multiple charges including conspiracy to commit health care claims fraud, unlicensed practice of medicine, and Medicaid fraud.

According to the Attorney General’s Office, both women allegedly performed gynecological procedures at Bessie Mae Women’s Health Center, a family and women’s health practice in East Orange, without holding medical licenses. 

Investigators allege that from December 2020 through February 2024, the clinic submitted about 2,500 claims to the New Jersey Medicaid Program using the names of two licensed physicians without their consent.

“This case alleges a deliberate abuse of the Medicaid system and a betrayal of patient trust,” said Acting Attorney General Davenport. “Submitting claims for medical services performed by unlicensed individuals undermines the integrity of Medicaid and diverts critical resources from those who rely on the program.”

State officials said the scheme was uncovered following a referral from the New Jersey Division of Consumer Affairs in August 2023 regarding reports of unlicensed medical activity at the clinic. In January 2024, the Department of Health issued a cease-and-desist order to Davis-Sharpe directing her to halt all medical operations at the facility.

Lushchak, who is allegedly enrolled as a medical student at Suburban Community Hospital in Norristown, Pennsylvania, was hired by Davis-Sharpe in May 2021, authorities said. Neither woman held a medical license in New Jersey.

Division of Criminal Justice Director Theresa L. Hilton said the case underscores the “importance of state agencies working together to respond to reports of allegedly illegal activity and root it out.” Acting Insurance Fraud Prosecutor Al Garcia added that filing fraudulent Medicaid claims “leads to all of us paying more to run that system” while placing patients at risk.

If convicted, the defendants face up to 10 years in prison for second-degree charges and five years for third-degree offenses. Both women remain presumed innocent unless proven guilty in court.

New Jersey residents can report suspected Medicaid fraud or elder abuse to the Medicaid Fraud Control Unit at (609) 292-1272 or via email at NJMFCU@njdcj.org.