Texas physician convicted in health care fraud scheme
Dr. Sekhar Rao, the medical director of ADAR Group LLC in Austin, Texas, was recently convicted of two counts of health care fraud. The scheme involved fraudulently billing TRICARE, the health care program for uniformed service members, retirees, and their families, for toxicology and genetic tests that were not provided as represented and/or were medically unnecessary.
According to court documents and evidence presented at trial, Dr. Rao authorized toxicology and genetic testing, including cancer genetic testing, for TRICARE beneficiaries without seeing, speaking to, or otherwise treating patients. In some cases, the patients did not know what they were being tested for. TRICARE beneficiaries were enticed to provide urine or saliva specimens in exchange for $50 gift cards.
Rao was paid in exchange for signing off on medically unnecessary and repetitive toxicology and genetic tests. He faces a maximum penalty of 10 years in prison for each health care fraud count. Dr. Rao is scheduled to be sentenced on March 27, 2023.
This case was investigated by the Defense Criminal Investigative Service (DCIS), the Department of Health and Human Services Office of Inspector General (HHS-OIG), the FBI, the Department of Labor Office of Inspector General (DOL-OIG), and the Veterans Affairs Office of Inspector General (VA-OIG). Trial Attorneys Shy Jackson and Lee Michael Hirsch of the Criminal Division’s Fraud Section are prosecuting the case.
The Health Care Fraud Strike Force, led by the Fraud Section, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion since its inception in March 2007. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Dr. Sekhar Rao’s conviction is a significant blow to the health care fraud scheme, highlighting the importance of holding individuals accountable for their actions.
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Key Facts
- State: Texas
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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