Financial Advisor Sentenced to Prison for Multimillion-Dollar Health Care Fraud Scheme.Photo byMorristown Minute
Kaival Patel convicted of defrauding public insurance plans and laundering illicit proceeds.
NEW JERSEY – Kaival Patel, 55, of West New York, New Jersey, was sentenced to 41 months in federal prison for his role in a $4 million healthcare fraud conspiracy involving fraudulent prescriptions for compounded medications. Patel was convicted in December 2023 on 11 counts, including conspiracy to commit wire fraud and health care fraud, health care fraud, conspiracy to commit money laundering, and money laundering. U.S. District Judge Edward S. Kiel imposed the sentence in Camden federal court.
“This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.” – U.S. Attorney Philip R. Sellinger
Fraudulent Scheme
Patel operated ABC Healthy Living LLC, a business that marketed compounded medications—specialty prescriptions mixed by pharmacists to meet individual patient needs. Working with conspirators, Patel exploited insurance plans that reimbursed thousands of dollars for a one-month supply of certain compounded medications, including vitamins, pain creams, and libido creams.…