Former Brookline Physician Convicted Of Federal Fraud Charges

BROOKLINE, MA — A longtime Brookline-based physician was convicted of multiple financial fraud-related charges after a ten-day trial in Boston federal court, the United States District Attorney’s Office announced.

Dr. Pankaj Merchia, 52, was officially convicted of one count of health care fraud, three counts of money laundering, two counts of tax evasion, and one count of conspiracy to defraud the IRS on Tuesday, Jan. 27. He was first indicted in December of 2022 after he reportedly billed former patients’ insurance companies for monthly rentals of Continuous Positive Airway Pressure and Bilevel Positive Airway Pressure machines from 2017 to 2019, despite not having treated the patients since at least 2011. According to the U.S. DA’s Office, Merchia used the funds he fraudulently obtained to purchase his Brookline home. Additionally, Merchia defrauded another insurance company out of more than $390,000 by submitting claims for a CPAP machine provided to his brother. After he was told that the insurance carrier would not pay for treatment rendered by a family member, Merchia created a new medical business and submitted new claims in an effort to have the company pay for it. Merchia reportedly used the proceeds of this fraud to fund a wire transfer of $250,000 and to purchase at least $140,000 in securities.

Merchia was also indicted in February of 2023 for not reporting more than $6.5 million in income he earned from his medical businesses in order to avoid paying taxes throughout a ten-year period. According to the U.S. DA, he falsely claimed that those businesses were owned by Dr. Shona Pendse, who was also indicted.

Merchia is facing up to 15 years in prison, followed by multiple years of supervised release and half a million dollars in fines. He is slated to be sentenced by U.S. Senior District Court Judge Nathaniel M. Gorton on Sunday, April 26.

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