Mass. U.S. Attorney: Brookline Doctor Indicted for Money Laundering, Health Care Fraud - Insurance News | InsuranceNewsNet

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December 21, 2022 Newswires
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Mass. U.S. Attorney: Brookline Doctor Indicted for Money Laundering, Health Care Fraud

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BOSTON, Massachusetts, Dec. 21 -- The U.S. Attorney for the District of Massachusetts, Rachael S. Rollins, issued the following news release on Dec. 20, 2022:

A Brookline sleep medicine physician has been indicted by a federal grand jury in Boston for his alleged role in a health care fraud scheme.

Dr. Pankaj Merchia, 49, of Brookline and Boca Raton, Fla., was indicted on three counts of money laundering and one count of health care fraud. Merchia self-surrendered this morning and will appear in federal court in Boston today at 3 p.m. before U.S. District Court Magistrate Judge Jennifer C. Boal.

According to the indictment, Merchia perpetrated two distinct health care fraud schemes. Specifically, Merchia allegedly billed former patients' insurance companies for monthly rentals of Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPap) machines years after the former patients had discontinued their use of the machines and/or returned the machines to Merchia's office. It is alleged that Merchia used the proceeds of this fraud to purchase an expensive home in Brookline. Additionally, Merchia allegedly billed the insurance company of a family member over $400,000 for a monthly rental of a CPAP machine, despite knowing that the insurance carrier would not pay for treatment rendered by a family member. It is alleged that Merchia used the proceeds of this fraud to fund a wire transfer of $250,000 and to purchase at least $140,000 in securities.

The charges of money laundering and health care fraud provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; Joleen Simpson, Special Agent in Charge of the Internal Revenue Service's Criminal Investigation in Boston; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Lauren A. Graber of Rollins' Health Care Fraud Unit and Evan D. Panich of Rollins' Narcotics & Money Laundering Unit are prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

* * *

Original text here: https://www.justice.gov/usao-ma/pr/brookline-doctor-indicted-money-laundering-and-health-care-fraud

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