Queens cardiologist Ghanshyam Bhambhani is paying $2 million to settle civil fraud allegations tied to a years-long scheme that turned patient referrals into cash transactions. From 2010 through 2017, Bhambhani funneled money to other doctors disguised as rent payments — a front for kickbacks in exchange for steering Medicare, Medicaid, and Federal Employees’ Health Benefits Program patients his way. The fraud violated the Anti-Kickback Statute and the False Claims Act, exploiting government healthcare systems meant to protect the vulnerable.
Under the settlement, Bhambhani will pay the United States $1,370,294.50 and the State of New York $629,705.50. The deal follows a joint investigation by the Eastern District of New York, the FBI, and the Office of Personnel Management’s Office of Inspector General (OPM-OIG). Agents uncovered not only the kickback network but also evidence that Bhambhani falsified medical records to justify unnecessary cardiac procedures — padding bills and endangering patients for profit.
Bhambhani admitted to the conduct and has agreed to cooperate with federal authorities. The case was originally unsealed through a whistleblower under the qui tam provisions of the False Claims Act, filed as United States ex rel. FNU LNU LLC v. New York Cardiology P.C., et al., Civil No. 14-4581 (EDNY). Whistleblowers in such cases can share in the government’s recovery — a reward for exposing corruption from within.
Acting United States Attorney Seth D. DuCharme didn’t mince words: “Paying kickbacks for patient referrals erodes the integrity of our healthcare system and costs taxpayers precious dollars. Doctors must put patients first, not treat them like commodities unscrupulously paid for with government funds.” DuCharme credited HHS-OIG and the New York State Attorney General’s office for their critical role in the probe.
OPM-OIG Deputy Inspector General Norbert E. Vint emphasized the damage to federal workers: “Submitting false claims for services that are not medically necessary and creating false documentation to justify procedure undermines the FEHBP, wastes taxpayer dollars, and increases the cost of medical care for us all.” He hailed the collaboration between federal and state agencies that brought Bhambhani to account.
The civil resolution follows Bhambhani’s criminal downfall. In 2018, he surrendered his medical license after pleading guilty in the Eastern District of New York to one count of conspiracy to pay healthcare kickbacks. He was sentenced to 34 months in prison, three years of supervised release, and ordered to pay $217,364.83 in criminal restitution and $1,080,000 in criminal forfeiture. The government’s case was handled by Assistant U.S. Attorney Lisa Kutlin, with forensic support from Affirmative Civil Enforcement Auditor Michael Gambrell.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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