Houston Doctor to Pay $2M in Fake Surgery Scam

HOUSTON – A 63-year-old Houston doctor is shelling out over $2 million to settle accusations he was running a brazen scam, billing federal programs for surgeries he never performed. Dr. Ajay Aggarwal, an anesthesiologist and pain medicine doctor practicing in Bellaire, Lake Jackson, and Van Vleck, agreed to pay $2,053,515 to resolve the allegations, announced U.S. Attorney Nicholas J. Ganjei.

Aggarwal, operating under the sole proprietorship “Ajay Aggarwal” and the LLC “PRWCSWTX LLC” – collectively known as The Pain Relief & Wellness Center – allegedly submitted false claims from November 16, 2021, to March 28, 2023. The charges center around billing for the surgical implantation of neurostimulator electrodes, a procedure typically requiring a full operating room and commanding thousands of dollars in Medicare and Department of Labor’s Workers’ Compensation Program payments.

But according to investigators, Aggarwal wasn’t wielding scalpels. Instead of invasive surgery, patients allegedly received a rudimentary electro-acupuncture treatment: a few millimeters of monofilament wire inserted into their ears, with the neurostimulator taped on with adhesive. The procedures were conducted in Aggarwal’s clinic, not a hospital, and crucially, no incisions were made. He was billing for a complex spinal surgery while essentially applying a high-tech bandage.

“A doctor who uses simple medical devices on his patients, yet bills Medicare for a sophisticated spinal surgery, is bilking the American taxpayer, plain and simple,” Ganjei stated bluntly. “The Southern District of Texas will ensure that losses to federally funded healthcare programs from fraudulent billing, like what happened here, are recouped and that wrongdoers are held accountable.” The feds are sending a clear message: try to cheat the system, and you’ll pay.

Federal investigators weren’t working alone. The U.S. Attorney’s Office collaborated with the Offices of Inspector General (OIG) from the U.S. Postal Service, Department of Labor, and Department of Health and Human Services. OIG offices from the Office of Personnel Management and Department of Veterans Affairs also contributed. Jonathan Ulrich (USPS-OIG), Casey Howard (DOL-OIG), and Jason E. Meadows (DHHS-OIG) all emphasized the importance of protecting federal benefit programs from fraud, waste, and abuse. Assistant U.S. Attorney Laura E. Collins handled the case.

It’s critical to note that the settlement represents the resolution of allegations only. There has been no formal determination of liability. However, the hefty financial penalty serves as a stark warning to anyone considering similar schemes. The government is determined to recoup losses and hold those responsible for defrauding taxpayers accountable, no matter how slick the operation.

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