BOSTON — A Canton man has agreed to plead guilty to defrauding Medicare of more than $4 million, the U.S. Attorney said Monday.
Krishna Gidwani, 55, is among more than 300 people now charged nationwide in connection with more than $14.6 billion in alleged fraud, making it the largest health care fraud takedown in history.
“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” Attorney General Pamela Bondi said in a statement on Monday.
“Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities,” Bondi said.
Gidwani was charged with one count of conspiracy to commit health care fraud, U.S. Attorney Leah Foley said. A plea hearing is scheduled for July 30.
Gidwani’s submitted claims for durable medical equipment that was medically unnecessary, not wanted by the Medicare beneficiaries, and tainted by kickbacks, Foley said.
“Mr. Gidwani is accused of manipulating Medicare to enrich himself – misusing the names of unwitting doctors to push unwanted and unnecessary medical equipment onto elderly patients,“ Foley said in a statement.
According to the charging documents, Gidwani allegedly worked with Raju Sharma of Sharon and other co-conspirators to own and operate a medical equipment company that paid telemarketing companies for orders for orthotics such as ankle, wrist, knee and back braces.
Often, the Medicare beneficiaries did not need or want the braces that were shipped to them and the doctors whose signatures appeared on these medical equipment orders often did not treat these beneficiaries and did not prescribe the equipment.
In May, Sharma agreed to plead guilty to health care fraud conspiracy for his alleged role in the scheme. His plea hearing is scheduled for July 8.
“Health care fraud is not a victimless crime. It drives up costs, exploits vulnerable patients and undermines public trust in our medical system,” Foley said. “Today’s charges are part of a historic, nationwide effort to hold accountable those who abuse federal health care programs for personal gain. Our office will continue to work closely with our law enforcement partners to root out fraud and ensure that Medicare dollars support genuine patient care, not criminal profit.”
Nationally, criminal charges have been filed against 324 people accused of health care fraud and illegal drug diversion schemes. Federal officials said the schemes involved the submission of over $14.6 billion in intended loss and over 15 million pills of illegally diverted controlled substances.
The people charged are accused of defrauding programs entrusted for the care of the elderly and disabled to line their own pockets, federal prosecutors said.
“The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” HHS-OIG Acting Inspector General Juliet Hodgkins said in a statement.
“Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care,” Hodgkins said.
The United States has seized over $245 million in cash, luxury vehicles and other assets in connection with the takedown, officials said.
“Health care fraud affects everyone. Not only does it put a strain on our country’s vital health care system, but it costs taxpayers billions of dollars every year,” Ted Docks, Special Agent in Charge of the FBI’s Boston Division, said in a statement.
“FBI Boston will continue to work with our law enforcement and private sector partners to identify and investigate individuals like Krishna Gidwani who are accused of submitting claims that are medically unnecessary and tainted by kickbacks,” Docks said.
For the charge of conspiracy to commit health care fraud, Gidwani faces a sentence of up to 10 years in prison, supervised release for up to three years and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater.
This is a developing story. Check back for updates as more information becomes available.
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