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Indian American convicted in multimillion-dollar health care fraud conspiracy
Approximately 47 individuals have been convicted or pleaded guilty in the overarching conspiracy
Representative image / image - iStock
Indian American resident from West New York, New Jersey, was found guilty on 11 counts of defrauding public health insurance plans of over US$ 4 million and transacting in the criminal proceeds.
Financial advisor Kaival Patel was convicted of one count of conspiracy to commit wire fraud and healthcare fraud, four counts of healthcare fraud, one of conspiracy to commit money laundering, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before US District Judge Robert B. Kugler.
According to the Justice Department statement, Patel operated a company named ABC Healthy Living LLC to market compound prescription medications.
On learning that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications, Patel and his conspirators prescribed for the medications for patients who had no medical need.
In doing so, Patel received commissions for the compound medication prescriptions. He faces a maximum penalty of twenty years in prison and a fine of US $250,000 as fine, or twice the gross pecuniary loss from the offense, whichever is greatest, for the conspiracy to commit wire fraud and health care fraud.
For the remaining 10 counts, he faces a maximum penalty of ten years in prison and a US $250,000 fine, or twice the gross pecuniary gain or loss from the offense, whichever is greatest. The court has scheduled the sentencing on April 10, 2024.
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