BOSTON – Two well-to-do doctors in Brookline are facing the music after a federal indictment unsealed today alleges a brazen scheme to dodge taxes and bilk insurance companies out of millions. Dr. Pankaj Merchia, 49, of Brookline and Boca Raton, Fla., and Dr. Shona Pendse, 50, of Brookline, are accused of cooking the books and exploiting patients for personal gain.
The feds say Merchia and Pendse conspired to create a phony $30 million transaction solely to justify bogus tax deductions. They then allegedly lied about it to investigators. Pendse, according to the indictment, pulled a fast one on her employer by submitting a W-4 claiming tax-exempt status, effectively ensuring minimal federal income tax withholding. Both doctors are accused of failing to pay taxes on substantial income earned between 2017 and 2020.
But the tax evasion isn’t the half of it. Merchia is already facing charges from a December 2022 indictment for health care fraud and money laundering. The new indictment details two separate schemes where Merchia allegedly billed insurance companies for months of CPAP and BiPap machine rentals after patients had stopped using them or returned the equipment. Sources say he used the ill-gotten gains to purchase a lavish home in Brookline.
The alleged greed doesn’t stop there. Merchia is also accused of billing the insurance company of a family member over $400,000 for a CPAP machine rental, knowing full well the claim wouldn’t be paid due to conflict of interest rules. He then allegedly used those funds to wire $250,000 and purchase $140,000 in securities. It’s a classic case of doctors treating the system, not the patient.
If convicted, Merchia and Pendse could each face up to five years in prison for tax evasion and conspiracy, and up to ten years for the healthcare fraud and money laundering charges. Each charge also carries a potential fine of up to $250,000 and three years of supervised release. The actual sentence will be determined by a federal judge, factoring in sentencing guidelines.
U.S. Attorney Rachael S. Rollins, along with Joleen Simpson of the IRS Criminal Investigation and Anthony M. DiPaolo of the Insurance Fraud Bureau of Massachusetts, announced the charges. Assistant U.S. Attorneys Lauren A. Graber and Evan D. Panich are leading the prosecution. It’s important to remember these are allegations, and both Merchia and Pendse are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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