Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A former physician from Brookline, Massachusetts, has been convicted of health care fraud, money laundering, tax evasion, and conspiracy to defraud the Internal Revenue Service (IRS) after a 10-day jury trial in federal court in Boston.
Dr. Pankaj Merchia, age 52, who also resided in Boca Raton, Florida, was found guilty on January 27, 2026. The charges include one count of health care fraud, three counts of money laundering, two counts of tax evasion, and one count of conspiracy to defraud the IRS. Sentencing is scheduled for April 28, 2026 by U.S. Senior District Court Judge Nathaniel M. Gorton.
Merchia had previously been indicted for money laundering and health care fraud in December 2022. Additional tax-related charges were added in February 2023 through a superseding indictment that also named Dr. Shona Pendse as an alleged co-conspirator.
Prosecutors detailed two separate health care fraud schemes carried out by Merchia. In the first scheme, he billed insurance companies for monthly rentals of CPAP and BiPap machines between 2017 and 2019 for patients he had not treated since at least 2011; some patients had even returned their devices to him. According to authorities, proceeds from this activity were used to purchase an expensive home in Brookline.
In another scheme described during the trial, Merchia submitted claims totaling more than $390,000 to an insurance company for a CPAP machine provided to his brother. After being informed that treatment rendered by a family member would not be covered by insurance, Merchia established a new medical business and continued submitting claims so payments would be approved. He then used these funds for a $250,000 wire transfer and purchased at least $140,000 worth of securities.
The case also involved significant tax offenses spanning from 2009 to 2019. During this period, Merchia did not report or pay taxes on over $6.5 million earned from his medical businesses by falsely stating they were owned by his co-conspirator instead of himself. Prosecutors said Merchia fabricated a sale of his businesses in 2008 as part of this scheme and claimed large amortization deductions over several years related to the sham transaction so that neither he nor his co-conspirator would owe taxes.
If convicted on all counts at sentencing, Merchia faces up to ten years in prison for each count of money laundering and health care fraud; each charge also carries up to three years’ supervised release and fines up to $250,000. Tax evasion and conspiracy charges carry penalties of up to five years in prison per count along with similar supervised release terms and fines.
"United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement."
"Assistant U.S. Attorney Neil J. Gallagher, Jr. of the Health Care Fraud Unit and Trial Attorney Ezra Spiro of the Department of Justice Criminal Division’s Tax Section are prosecuting the case."
"The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law."
