$4M Scam Verdict: Indian Convicted in NJ

In a recent legal case, 54-year-old Indian-American Kaival Patel, residing in West New York, New Jersey, was found guilty of defrauding public health insurance plans, accumulating over USD 4 million in illicit gains.

Patel, convicted on multiple charges including wire fraud, health care fraud, money laundering, and conspiracy, operated ABC Healthy Living LLC to market compound prescription medications.

The scheme involved identifying state and local government employees with insurance plans that reimbursed substantial amounts for certain compound medications.

Patel, along with co-conspirators, persuaded his family member, a doctor, to authorize unnecessary prescriptions for these medications. Patel, in turn, received commissions for these fraudulent prescriptions.

To enhance profits, Patel collaborated with a compounding pharmacist to add unnecessary ingredients to the medications, inflating their costs. Further complicating matters, Patel paid corrections officers to obtain these prescriptions from his family member’s medical practice.

Patel now faces a maximum penalty of 20 years in prison and a substantial fine. Sentencing is scheduled for April 10, 2024.