NEW JERSEY — Dr. Fazal Panezai, a cardiologist based in Matawan, New Jersey, has pleaded guilty to charges of health care fraud after admitting his role in a scheme that defrauded health insurance companies of more than $1.9 million. U.S. Attorney Philip R. Sellinger announced the guilty plea, which was entered before U.S. District Judge Georgette Castner in Trenton federal court.

Dr. Panezai, 76, from Morganville, New Jersey, operated the Matawan-Aberdeen Heart & Medical Center where he engaged in multiple fraudulent activities. 

According to court documents and statements, Dr. Panezai submitted false claims for office visits that either never occurred or were falsely reported in terms of duration. On one occasion, he claimed office visits amounted to approximately 27.9 hours in a single day. Further, while traveling abroad, he billed insurers over $80,000 for consultations that did not take place.

Panezai also submitted claims for minimal interactions, such as when patients picked up prescriptions without a consultation, misleading insurers about the nature of the patient interactions and services provided. These fraudulent activities led to significant illegal profits, which Dr. Panezai retained from the payouts by insurance companies.

The charge of healthcare fraud carries a severe penalty, with Dr. Panezai facing a maximum of 10 years in prison. Additionally, he could be ordered to pay a fine of up to $250,000 or twice the amount of the financial gain or loss from the offense, whichever is higher. His sentencing is scheduled for August 20, 2024.

The FBI’s Newark division, under the direction of Special Agent in Charge James E. Dennehy, conducted the investigation that led to Dr. Panezai’s guilty plea. 

The Matawan Police Department also contributed to the investigation. The case is being prosecuted by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

This case highlights the ongoing efforts of federal and local law enforcement to combat healthcare fraud, aiming to protect the integrity of the healthcare system and the financial resources of health insurance programs and their beneficiaries.