Dr. Fazal Panezai, Health Care Fraud, New Jersey 2024

TRENTON, N.J. – Dr. Fazal Panezai, 76, of Morganville, New Jersey, has been caught red-handed in a brazen health care fraud scheme that left insurance companies reeling, with over $1.9 million in reimbursements down the drain.

Panezai, the owner and sole medical provider of Matawan-Aberdeen Heart & Medical Center, submitted false claims to at least six health insurance benefit programs for office visits that either never occurred or did not take place for the length of time that he claimed. For example, Panezai submitted claims for office visits lasting approximately 1,675 minutes – approximately 27.9 hours – for one day’s worth of office visits on May 27, 2022.

But that’s not all – Panezai also billed health insurance providers over $80,000 for office visits when he was out of the country and not conducting any office visits. And get this – he even submitted claims for office visits when patients only picked up a prescription for a controlled substance from the front desk and never met with him. The false claims caused insurance plans to issue reimbursement checks to the center, which Panezai kept for himself, totaling more than $1.9 million.

The charge of health care fraud is punishable by a maximum of 10 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Aug. 20, 2024.

U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the Matawan Police Department.

The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

Panezai’s scheme has left many questioning the integrity of the health care system. As one expert noted, ‘This is a clear case of a doctor exploiting the system for personal gain, leaving patients and insurance companies to foot the bill.’

Dr. Fazal Panezai’s guilty plea is a wake-up call for the medical community, reminding us that even the most trusted professionals can fall prey to greed and corruption.

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