Related Federal Cases
$50M Health Care Scam: Patel’s Plea Deal Unravels Massive Medicare Swindle
A $50M health care fraud scheme has finally been brought to its knees after Manishkumar Patel, 44, of Pelham Manor, New York, pleaded guilty to his role in the massive scam.
Patel, a leader of the scheme, orchestrated a complex web of deceit that involved selling fraudulent prescriptions for durable medical equipment and pharmaceuticals to suppliers, pharmacies, and laboratories who obtained payment for those prescriptions from Medicare. The scheme, which spanned from 2019 to 2022, resulted in losses of nearly $50 million to Medicare.
According to the charging documents, Patel obtained prescriptions and doctors’ orders for medical equipment and pharmaceuticals by arranging cursory telemedicine appointments with beneficiaries, a practice known as “doctor chasing.” He then sold these prescriptions to Medicare providers, who filled the orders and billed Medicare, despite many beneficiaries rejecting the items and doctors threatening to report Patel for fraud.
The Medicare providers made payments to Patel for the prescriptions in violation of the Anti-Kickback Statute, with Patel and the providers entering into sham contracts for generic marketing services to conceal their illegal kickback scheme.
Patel’s guilty plea comes after a thorough investigation by the Department of Health and Human Services, Office of Inspector General, with the case being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.
U.S. Attorney Damian Williams praised the outstanding work of the Department of Health and Human Services, Office of Inspector General, saying, “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 faces up to 5 years in prison for his role in the scheme, and has been ordered to pay $48,150,692.49 in restitution to the U.S. Centers for Medicare and Medicaid Services and forfeit $6,839,900. Patel is scheduled to be sentenced on July 26, 2024, at 10:00 a.m. before U.S. District Judge Lorna Schofield.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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