A Houston-based anesthesiologist and pain medicine specialist, Dr. Ajay Aggarwal, has agreed to pay more than $2 million to settle allegations of submitting false claims to federal health care programs. The announcement was made by U.S. Attorney Nicholas J. Ganjei.
Aggarwal, who operates medical practices in Bellaire, Lake Jackson, and Van Vleck under the names Ajay Aggarwal, a sole proprietorship, and PRWCSWTX LLC—collectively known as The Pain Relief & Wellness Center—was accused of billing Medicare and the Department of Labor’s Workers’ Compensation Programs for surgical implantation of neurostimulator electrodes between November 2021 and March 2023.
According to the allegations, these procedures are typically invasive surgeries requiring an operating room and command significant reimbursement from federal programs. However, it is alleged that neither Aggarwal nor his staff performed such surgeries. Instead, patients reportedly received devices for electro-acupuncture—a process involving insertion of monofilament wire into the ear with no incisions or use of an operating room.
All device placements allegedly occurred at Aggarwal’s clinic rather than in a hospital or surgical center.
“A doctor who uses simple medical devices on his patients, yet bills Medicare for a sophisticated spinal surgery, is bilking the American taxpayer, plain and simple,” said Ganjei. “The Southern District of Texas will ensure that losses to federally funded healthcare programs from fraudulent billing, like what happened here, are recouped and that wrongdoers are held accountable.”
Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service - Office of Inspector General (USPS-OIG) commented on the outcome: “The civil penalties imposed today strongly serve as a clear deterrent to those engaging in fraud against federal benefit programs. USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to protect the Postal Service from fraud, waste and abuse.”
Special Agent in Charge Casey Howard of DOL-OIG added: “Investigating alleged false claims involving the programs administered by the Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) is an important part of our mission. That is particularly true when a medical provider is involved. We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s worker compensation programs.”
Special Agent in Charge Jason E. Meadows from DHHS-OIG stated: “This settlement underscores our agency’s steadfast commitment to enforcing the False Claims Act. Working with our law enforcement partners, DHHS-OIG remains dedicated to safeguarding the integrity of federal health care programs and protecting the individuals who depend on them by investigating schemes that compromise the proper use of medical devices.”
The investigation was led by the U.S. Attorney’s Office with assistance from several agencies including OIG offices at USPS, DOL, DHHS as well as contributions from OIG offices at the Office of Personnel Management and Department of Veterans Affairs. Assistant U.S. Attorney Laura E. Collins handled this matter.
Officials emphasized that these claims remain allegations only; there has been no determination of liability.
