Livingston Doctor Took Illegal Cash Kickbacks, Failed to Report $1 Million for Taxes

More than three years after his original arrest, a Livingston resident and former family medicine doctor who practiced in East Orange was sentenced to nine months in prison for receiving illegal cash kickbacks and failing to file tax returns on almost $1 million income.

Yash Khanna, 73, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a six-count superseding indictment charging him with conspiracy to violate the federal health care anti-kickback statute. Khanna was also charged with soliciting and receiving more than $10,000 in illegal cash kickbacks for patient referrals in violation of the anti-kickback statute, and failing to file tax returns for tax years 2008, 2009 and 2010.

Khanna was originally arrested as part of a 13-defendant bust in 2011. [See related story]

According to court documents and statements, from 2009 to 2011, Khanna owned and operated his own medical practice, Family Medicine and Pediatrics in East Orange. During the course of business, Khanna agreed with representatives of diagnostic testing facility Orange Community MRI to accept cash in exchange for Medicare and Medicaid patient referrals.

Khanna admitted meeting with an Orange Community MRI representative at his office on multiple occasions to receive envelopes containing cash kickbacks.

Khanna also admitted to earning income of more than $381,000 in 2008, $400,000 in 2009, and $214,000 in 2010. According to authorities, he intentionally failed to file tax returns or ask for extensions during those years.

In addition to the prison term, a federal judge sentenced Khanna to serve one month of house arrest and three years of supervised release, fined him $30,000, and ordered to forfeit $10,400.