Texas Doctor And Hospital Owner Convicted In $20 Million Healthcare Fraud Scheme

The U.S. Department of Justice U.S. Attorney’s Office Southern District of Texas announced on February 22, 2019 that a federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud, and three counts of money laundering. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.

The federal government alleged that Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During the criminal trial, the jury heard evidence that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary, not provided or both, and then billed at Red Oak Hospital at a higher reimbursement rate.

Additionally, the federal government alleged that Narang and his co-conspirators falsified home health patient assessment form documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna. Moparty also allegedly instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact the patients never received services from Red Oak and the other entities.

During the trial, patients testified that they merely had a Groupon for weight loss shots. However, after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. Health care benefit programs paid Red Oak Hospital approximately $3.2 million. Moparty then covertly paid Narang approximately $3 million to various corporate entities Narang owned.

Narang and Moparty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.

Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.

Source

If you have information regarding false claims having been submitted to Medicare, Medicaid, TRICARE, other federal health care programs, or to other federal agencies/programs, and the information is not publically known and no actions have been taken by the government with regard to recovering the false claims, you should promptly consult with a False Claims Act attorney (also known as qui tam attorneys) in your U.S. state who may investigate the basis of your False Claims Act allegations and who may also assist you in bringing a qui tam lawsuit on behalf of the United States, if appropriate, for which you may be entitled to receive a portion of the recovery received by the U.S. government.

Click here to visit our website or call us toll-free in the United States at 800-295-3959 to be connected with qui tam lawyers (False Claims Act lawyers) in your U.S. state who may assist you with a False Claims Act lawsuit.

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This entry was posted on Sunday, March 10th, 2019 at 5:29 am. Both comments and pings are currently closed.

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