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Shashi Agarwal, 60, Admits to Medicaid Kickbacks Scheme in New Jersey
Newark, N.J. – In a shocking turn of events, Shashi Agarwal, a cardiologist from Edison, N.J., pleaded guilty to soliciting and receiving over $100,000 in cash kickbacks from Orange Community MRI, LLC (Orange MRI) in Orange, N.J.
According to documents filed in this case and statements made in court, from early 2009 through December 2011, Orange MRI paid Agarwal for each MRI and CAT scan he referred. Agarwal received $100 cash for each Medicare or Medicaid patient he referred for an MRI and $50 for each CAT scan referral.
Agarwal agreed to refer as many as 20 MRIs to Orange MRI each month. He also admitted to receiving kickbacks on two occasions: $2,600 in cash from a government informant at Salvadoreño restaurant in Elizabeth, N.J., on October 11, 2011, and $2,500 in cash at his office in East Orange, N.J., on November 10, 2011.
The anti-kickback charge carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for June 6, 2013.
Agarwal is the 10th person to plead guilty in the government’s investigation into the scheme to pay cash to health care providers who referred patients to Orange MRI for diagnostic testing.
Eight of those who pleaded guilty have agreed to forfeit $279,690 in illegal cash kickbacks from Orange MRI.
The following individuals have also been charged in the investigation:
- Jose Castaneda, a nurse practitioner formerly practicing in Newark, N.J., pleaded guilty before Judge Cecchi on April 3, 2012, and is scheduled to be sentenced on June 18, 2013.
- Ash Khanna, M.D., a doctor practicing in East Orange, N.J., was indicted on May 4, 2012, by a federal grand jury on one count of accepting kickbacks.
- Dov Rand, M.D., a doctor practicing in West Orange, N.J., pleaded guilty before Judge Cecchi on May 18, 2012, and was sentenced to five months in prison and five months of home confinement on February 13, 2013.
- Daisy Deguzman, M.D., a doctor practicing in Newark, N.J., pleaded guilty before Judge Cecchi on June 4, 2012, and was sentenced to six months in prison and six months of home confinement on January 31, 2013.
- William Lagrada, M.D., another Newark, N.J., doctor, pleaded guilty before Judge Cecchi on July 11, 2012, and is scheduled to be sentenced on June 4, 2013.
- Maryam Jafari, M.D., another Newark, N.J, doctor, was indicted July 13, 2012, by a federal grand jury on one count of accepting kickbacks. On September 14, 2012, the same grand jury handed up a superseding indictment against Dr. Jafari, charging her with one count of conspiracy and two counts of accepting kickbacks. The trial of Dr. Jafari ended with a hung jury and mistrial on December 6, 2012.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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