Shelnider Aggarwal, Health Care Fraud, AL 2023

BIRMINGHAM – A federal judge today sentenced former Huntsville physician Shelnider Aggarwal, 48, to 15 years in prison for health care fraud and illegal prescribing, stemming from a scheme that involved $9.5 million in fraudulent urine tests.

U.S. District Judge R. David Proctor ordered the sentence along with the forfeiture of $6.7 million and Aggarwal’s former clinic on Turner Street Southwest. The judge also directed Aggarwal to repay $6.7 million to Medicare and Blue Cross Blue Shield of Alabama, with a prison report date set for April 12.

Aggarwal pleaded guilty to distributing controlled substances outside the scope of professional practice and conspiring to execute a health care fraud scheme against Medicare and BCBS of Alabama between 2011 and 2013. He earlier repaid $2.8 million to Medicare and $45,843 to BCBS after audits.

Acting U.S. Attorney Robert Posey emphasized the commitment to prosecute healthcare fraud and seek severe penalties for those who contribute to the opioid drug abuse epidemic. FBI Special Agent in Charge Roger C. Stanton noted Aggarwal’s contribution to the national opioid crisis and praised the efforts to shut down his pill mill.

Aggarwal surrendered his medical license in 2013 following an investigation by the Alabama Board of Medical Examiners. He operated Chronic Pain Care Services, where patients were seen for brief visits, often receiving only controlled substances without appropriate treatment.

Court documents indicate that Aggarwal was responsible for over 12 million pills dispensed in 2012, with a prescription rate of nearly 425 per day. His practices were documented by the Prescription Drug Monitoring Program and Medicare data.