Spitzer Sues Former Doctor For Fraud
A cosmetic surgeon whose medical license was revoked because of negligence and incompetence was sued yesterday by the state attorney general for allegedly defrauding patients who paid him but received no treatment.
Dr. David Haim Ostad, who had offices in Manhattan, Staten Island, and Long Island, accepted tens of thousands of dollars in prepayments for cosmetic surgery but failed to do the procedures after his license was revoked and did not return patients' money, according to papers filed in Manhattan's state Supreme Court by the state attorney general, Eliot Spitzer. At least nine patients paid for unperformed procedures, court papers said.
Rather than telling patients his license had been lifted and referring them to other doctors, Mr. Ostad kept scheduling surgeries that he could not perform, the court papers say. As a result they say one patient lost more than $40,000 in surgery prepayments.
Mr. Ostad's license was revoked by the state Board for Professional Medical Conduct on August 31, 2005, based on negligence, incompetence, and failure to maintain adequate medical records, among other charges, court papers say.
The state began investigating Mr. Ostad in 2001, following complaints to state health authorities about him.
Mr. Ostad, of Old Westbury, "cannot legally perform the services for which consumers prepaid funds, now or in the future," and by keeping the money he "acted in a deceptive and fraudulent manner," the court papers say.
Mr. Spitzer's lawsuit asks the court to compel Mr. Ostad and two companies he owned - both called ParkAvenue Plastic Surgery - to refund money to patients and produce records of all patients who prepaid but received no medical services.
The lawsuit also seeks to prevent Mr. Ostad and his companies from transferring any money until he repays patients and pays penalties and costs. A spokesman for Mr. Spitzer said his office did not know whether Mr. Ostad had a lawyer. No business or residential telephone listing was found for Mr. Ostad.
