NEW YORK – The US Attorney's Office for the District of New Jersey said Thursday that the owner of a New York-based consulting firm has pleaded guilty to charges related to a $5.3 million COVID-19 testing fraud scheme.
Mansinh Chaudhari pleaded guilty to conspiracy to commit healthcare fraud and conspiracy to violate the federal Anti-Kickback Statute.
According to the government, Chaudhari's consulting firm purchased information on Medicare beneficiaries that he then sold to medical providers in New Jersey, Tennessee, Colorado, Connecticut, Utah, and elsewhere, allowing those providers to submit Medicare claims for up to eight over-the-counter COVID-19 tests per month that beneficiaries did not need and had not ordered.
Chaudhari and the medical providers attempted to conceal their arrangements by entering into sham agreements, the DOJ said. He also issued fraudulent invoices to the medical providers billing them for marketing, consulting, or fulfillment services.
In total, Chaudhari and his conspirators caused a loss to Medicare of more than $5.3 million.
He is scheduled to be sentenced April 29, 2025. Conspiracy to commit healthcare fraud is punishable by up to 10 years in prison while conspiracy to violate the federal Anti-Kickback Statute is punishable by up to five years in prison. Each count is also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.