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Pelham Manor Man Tackled in $50M Health Care Heist
Manishkumar Patel, 44, of Pelham Manor, New York, pleaded guilty to a $50 million health care fraud and kickback scheme involving the sale of fraudulent prescriptions for medical equipment, pharmaceuticals, and laboratory tests to suppliers, pharmacies, and laboratories.
According to the charging documents, Patel and a co-conspirator fraudulently sold prescriptions and doctors’ orders to Medicare suppliers, pharmacies, and laboratories. They obtained the information from call centers that called Medicare beneficiaries and arranged for cursory telemedicine appointments to justify the prescriptions. Many beneficiaries rejected the items, and Medicare frequently refused to pay for the scripts.
The scheme resulted in losses to Medicare of nearly $50 million. Patel was a leader of the scheme and obtained payments from the Medicare Providers in violation of the Anti-Kickback Statue. He entered into sham contracts for generic marketing services to conceal the kickback scheme.
Patel pleaded guilty to one count of conspiracy to commit health care fraud, one count of wire fraud, and one count of violating the Anti-Kickback Statute. He faces a maximum sentence of five years in prison and must pay $48,150,692.49 in restitution to the U.S. Centers for Medicare and Medicaid Services and forfeit $6,839,900.
U.S. Attorney Damian Williams said, “Behind every dollar siphoned through fraud lies a patient denied rightful care. Manishkumar Patel cost Medicare nearly $50 million in resources that could have been used to provide genuine care to those in need.”
Patel is scheduled to be sentenced on July 26, 2024, at 10:00 a.m. before U.S. District Judge Lorna Schofield. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit, with Assistant U.S. Attorney Kevin Mead in charge of the prosecution.
The Department of Health and Human Services, Office of Inspector General, praised the outstanding work that led to Patel’s guilty plea.
Patel’s scheme highlights the need for vigilance in the health care system. As U.S. Attorney Williams noted, “His guilty plea today is a step toward restoring integrity and trust in our health care system.”
The $50 million health care heist serves as a reminder of the importance of holding accountable those who exploit the system for personal gain.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Health Care Fraud|White Collar Crime|Financial Crimes
- Source: Official Source ↗
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