New Jersey Doctor to Serve 35 Months for Submitting False Claims Worth $1.9M
A New Jersey physician was sentenced to 35 months in federal prison for a $1.9 million health care fraud scheme, the U.S. Attorney’s Office for the District of New Jersey announced. Dr. Fazal Panezai, 76, of Morganville, received his sentence from U.S. District Judge Georgette Castner, who also ordered three years of supervised release and a $1.95 million restitution payment.
As the owner and operator of Matawan-Aberdeen Heart & Medical Center, Panezai had previously pled guilty to health care fraud. According to court documents, he submitted false claims over several years to at least six insurance companies, often billing for office visits that did not occur or were far shorter than claimed. In one instance, Panezai billed insurers for nearly 28 hours of office visits on a single day, May 27, 2022.
Court records also show he charged for more than $80,000 in visits while he was out of the country and submitted claims for consultations when patients only picked up prescriptions for controlled substances, bypassing in-person appointments. This scheme enabled Panezai to collect over $1.9 million through fraudulent insurance reimbursements.
The U.S. Attorney’s Office stated that Panezai’s actions exploited patients and health insurers, damaging trust in the medical system.
