A Florida resident has been found guilty by a federal jury for his involvement in a kickback scheme involving durable medical equipment (DME) that resulted in significant financial losses to Medicare and other insurance providers. The announcement was made by United States Attorney John Giordano.
Raheel Naviwala, 36, from Coral Springs, Florida, faced conviction after a month-long trial overseen by U.S. District Judge Michael E. Farbiarz. On February 28, 2025, he was convicted of conspiracy to commit health care fraud and wire fraud, one count of health care fraud, conspiracy to violate the Anti-Kickback Statute, and three counts of violating the Anti-Kickback Statute. He was acquitted on two counts of health care fraud.
“This Office is committed to prosecuting those like the defendant who seek to profit by defrauding and corrupting our nation’s medical systems,” stated United States Attorney John Giordano. “When people siphon millions from Medicare to line their own pockets, regular citizens pay the price. This case demonstrates that serious consequences will follow for such conduct.”
FBI Acting Special Agent in Charge Terence G. Reilly commented on the complexity of the scheme orchestrated by Naviwala and his associates: “The scheme Naviwala and his co-conspirators created to steal money from the government was complex and expansive.” He emphasized that "FBI Newark and our law enforcement partners have the expertise and grit to dig through mountains of data and find the fraudsters."
Special Agent in Charge Naomi Gruchacz with HHS-OIG noted that Naviwala prioritized personal gain over providing necessary healthcare services: “The defendant convicted in this case prioritized greed over the provision of appropriate health care services to patients." She affirmed HHS-OIG's commitment "to ensure the integrity of the federal health care system."
Patrick J. Hegarty from DCIS underscored how Naviwala's actions endangered TRICARE beneficiaries: “Mr. Naviwala’s illegal schemes put the TRICARE program and its beneficiaries at risk.” He assured continued collaboration with partner agencies against fraudulent activities.
Christopher F. Algieri with VA OIG highlighted how such schemes compromise veterans' services: “Schemes such as these compromise the integrity of VA’s programs... The VA OIG will continue to work with our law enforcement partners to root out fraudsters.”
During trial proceedings, evidence showed that Naviwala purchased lists containing Medicare patients’ details which were used by telemarketers hired to persuade patients into acquiring DME braces under false pretenses. Telemedicine doctors were paid for signing prescriptions without patient interaction.
Naviwala then sold these prescriptions allowing DME supply companies to bill insurers including Medicare and TRICARE for unnecessary equipment using falsified contracts disguising transactions as legitimate business dealings.
Sentencing is set for July 29, 2025; potential penalties include up to 20 years imprisonment for conspiracy charges among others plus fines per illegal kickback count.
United States Attorney John Giordano credited FBI special agents led by Terence G. Reilly; HHS-OIG led by Naomi Gruchacz; DCIS led by Patrick J. Hegarty; along with VA OIG led by Christopher F. Algieri for their investigative roles leading up towards this conviction.
The prosecution team includes Assistant U.S Attorneys Elaine K Lou (Deputy Chief Criminal Division), Matthew Specht (Special Prosecutions Division), Aaron L Webman (Economic Crimes Unit).
Defense counsel comprises Jamie Hoxie Solano Esq., Amy C Brown Esq., Bryan W McCracken Esq., Ifedapo Benjamin Esq., all based out New York City.
