Dr. Fazal Panezai, Health Care Fraud, New Jersey 2023

Dr. Fazal Panezai

TRENTON, N.J. – In a case highlighting the dark side of the medical profession, Dr. Fazal Panezai, 76, of Morganville, New Jersey, was sentenced to 35 months in prison for orchestrating a health care fraud scheme. 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.

According to documents filed in the case and statements made in court, 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. 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. Panezai also 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.

Panezai’s health care fraud scheme caused insurance plans to issue reimbursement checks to the center. Panezai kept the illicit profits, which totaled more than $1.9 million. In addition to the prison term, Judge Castner sentenced Panezai to three years of supervised release and ordered him to pay restitution of $1.95 million.

TRENTON, N.J. – In a statement, U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the sentencing. He also thanked the Matawan Police Department.

The government is represented by Assistant U.S. Attorneys DeNae Thomas of the Health Care Fraud Unit and Jessica R. Ecker of the Criminal Division in Newark.

The case is a stark reminder of the need for vigilance in the medical profession. As we continue to uncover cases of medical professionals exploiting the system for personal gain, it is clear that there is still much work to be done in ensuring the integrity of our healthcare system.

Grimy Times will continue to follow this story and provide updates as more information becomes available.

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