By John Callegari
The Daily Record Newswire
LONG ISLAND — A Long Island company claiming to help people find living kidney donors for a fee has been shut down following an investigation by New York State Attorney General Eric Schneiderman’s office.
The company, Nassau-based Nephrologica, which also did business as the World Kidney Network, was found to have charged unlawful fees in connection with fraudulent claims that it would help customers find living kidney donors. The company’s founder, Michael Goldstein, advertised the scam via false ads and testimonials on various websites.
In addition, Schneiderman’s office found that from 2009 to 2013, Nephrologica posted solicitations on various websites seeking living kidney donors, promising the company would cover all travel expenses and up to $10,000 in “missed work earnings.” Offering someone money for an organ violates both state and federal law.
Several individuals from around the world responded to those ads, including one man from India who emailed Nephrologica that he was willing to donate his kidney to help his “financial problems.” Nephrologica responded by asking for his blood type, leading investigators to believe the company would go through with the organ purchase.
The fraud first started to unravel in 2011. A man from outside New York State posted a message on an Internet message board in July of that year.
Using a fake name, Goldstein replied to the man’s post by email, falsely claiming that Nephrologica had been able to assist someone else in finding a kidney donor in just seven months, had assisted in the coordination of more than 2,000 transplants and had a 100 percent success rate.
The man paid Nephrologica $6,000 before finally contacting Schneiderman’s Health Care Bureau about the company refusing to give him a refund after months of failing to provide help.
Goldstein reached a settlement with Schneiderman’s office to shutter the business, while also agreeing to refund all money collected – including that $6,000 – and pay $5,000 associated with the costs of the attorney general’s office’s investigation.
