Jay Clayton, the United States Attorney for the Southern District of New York, has announced that Manishkumar Patel has been sentenced to 14 months in prison. The sentencing was handed down by U.S. District Judge Lorna G. Schofield following Patel's guilty plea to charges including conspiring to commit healthcare fraud, wire fraud, and violating the Anti-Kickback Statute.
U.S. Attorney Jay Clayton stated: “As he previously admitted, Manishkumar Patel bilked Medicare for nearly $50 million. Frauds on our Medicare system increase costs for all Americans, and worse yet, potentially restrict access to those in need of critical healthcare. Patel’s 14-month sentence in federal prison sends an important deterrent message to those who would seek to bilk our Medicare system.”
Court documents reveal that between 2019 and 2022, Patel and a co-conspirator engaged in fraudulent activities involving the sale of prescriptions and doctors’ orders for durable medical equipment, pharmaceuticals, and laboratory tests to various Medicare Providers. These scripts were obtained through call centers contacting Medicare beneficiaries with basic questions intended to justify reimbursement by Medicare.
Patel utilized several methods to create these scripts: arranging brief telemedicine appointments with beneficiaries; engaging in "doctor chasing," where information was sent to a doctor who signed without patient interaction or knowledge; and acquiring forged scripts. He then sold these scripts to providers who billed Medicare for them.
Due to their fraudulent nature, many beneficiaries rejected the items sent by providers, some doctors threatened legal action against Patel, and Medicare often refused payment for these scripts.
The scheme involved payments made to Patel by providers under sham contracts meant to disguise illegal kickbacks. This operation resulted in approximately $48 million in losses for Medicare.
In addition to his prison term, Patel will serve one year of home detention. He is also ordered to pay restitution amounting to $48,150,692.49 to the U.S. Centers for Medicare and Medicaid Services and must forfeit $6,839,900.
Mr. Clayton commended the efforts of the U.S. Department of Health and Human Services' Office of Inspector General on this case. The prosecution is managed by Assistant U.S. Attorney Kevin Mead from the Complex Frauds and Cybercrime Unit.
