Indian convicted in a 4 million USD scam in USATop Stories

December 13, 2023 06:27
Indian convicted in a 4 million USD scam in USA

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Kaival Patel, a 54-year-old Indian-American residing in West New York, New Jersey, recently faced legal consequences for his involvement in defrauding public health insurance plans. Patel was found guilty of various charges, including wire fraud, health care fraud, money laundering, and conspiracy. His fraudulent activities revolved around his company, ABC Healthy Living LLC, which specialized in marketing compound prescription medications.

The scheme devised by Patel and his co-conspirators targeted state and local government employees who possessed insurance plans that provided significant reimbursements for certain compound medications. To execute their plan, Patel convinced a family member who was a doctor to authorize unnecessary prescriptions for these medications. In return, Patel received commissions for each fraudulent prescription.

To further maximize their profits, Patel collaborated with a compounding pharmacist to include unnecessary ingredients in the medications, thereby inflating their costs. Additionally, Patel went to great lengths by paying corrections officers to obtain these prescriptions from his family member's medical practice.

As a result of his actions, Patel managed to accumulate over USD 4 million in illicit gains. However, his fraudulent activities were eventually exposed, and he now faces severe consequences. If convicted, Patel could potentially face a maximum prison sentence of 20 years and a substantial fine. The sentencing for this case has been scheduled for April 10, 2024.

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Kaival Patel  health care fraud