Dr. Fazal Panezai, a 76-year-old physician from Morganville, New Jersey, was sentenced to 35 months in federal prison on Tuesday for orchestrating a fraudulent scheme that defrauded insurance programs of over $1.9 million, the U.S. Attorney’s Office for the District of New Jersey announced.
U.S. District Judge Georgette Castner handed down the sentence, which also includes three years of supervised release and a restitution order of $1.95 million. Panezai had previously pleaded guilty to charges of health care fraud for his role in submitting false insurance claims over a period of several years.
Panezai was the sole operator of the Matawan-Aberdeen Heart & Medical Center, where he submitted fraudulent claims to at least six health insurance providers. These claims included charges for office visits that never occurred or lasted much shorter than what was claimed.
Court documents reveal a particularly egregious example on May 27, 2022, when Panezai billed insurers for approximately 1,675 minutes—nearly 28 hours—of office visits in a single day, far beyond the typical hours of a working day. On other occasions, Panezai submitted claims for over $80,000 in office visits that occurred while he was outside the country, making it impossible for him to see patients.
Furthermore, Panezai billed insurers for prescription refills where no in-person consultations had taken place, exploiting patients’ need for medication to further his fraudulent activities.
As a result of these fraudulent claims, insurance companies issued significant reimbursement checks, which Panezai cashed, accumulating over $1.9 million in ill-gotten gains.
The U.S. Attorney’s Office stated that Panezai’s actions undermined both the integrity of the health care system and the trust that patients place in their medical providers. By submitting false claims for services not rendered, he not only defrauded the insurance programs but also caused financial harm to the system.
In addition to his prison sentence, Dr. Panezai must pay restitution to compensate for the fraudulent funds he obtained through his scheme. The case highlights the ongoing efforts of the Department of Justice to combat fraud in the medical industry and hold accountable those who exploit the system for personal gain.
Dr. Panezai’s sentencing sends a clear message about the seriousness of health care fraud and the legal consequences for medical professionals who engage in fraudulent billing practices. His case serves as a reminder of the importance of vigilance in safeguarding the integrity of health care reimbursements and protecting both patients and insurance providers from fraud.