35 Months In Prison For Matawan Doc Who Admitted Insurance Fraud

MATAWAN, NJ — A cardiologist who practiced for years on Main Street in Matawan was sentenced Tuesday to 35 months in prison for a $1.9-million health insurance fraud scheme, said U.S. Attorney Philip Sellinger.

The physician is Dr. Fazal Panezai, 76, who owned and operated Matawan-Aberdeen Heart & Medical Center on Main Street (the practice closed in January). He lives or lived in Morganville.

Patch most recently reported on Dr. Panezai Nov. 1, because the state of New Jersey permanently revoked his medical license after he admitted to the insurance fraud.

Separately, Dr. Panezai is accused of inappropriately touching a female patient in September 2018, and has been charged with fourth-degree criminal sexual contact. He has not been convicted of that crime, and the woman's allegation against him is pending investigation.

His next court date for that criminal charge is scheduled for this Friday, Nov. 15.

In April, Dr. Panezai pleaded guilty in federal court to one count of knowingly and intentionally executing a healthcare fraud scheme. For years, Panezai submitted false claims to at least six health insurers for office visits that either never occurred, or did not take place for as long as he claimed, said Sellinger.

For example, Panezai submitted claims for 27.9 hours worth of office visits that he claimed took place on one single day (May 27, 2022). Panezai also billed health insurers more than $80,000 for office visits when he was out of the country. He also submitted claims for office visits where patients only picked up a prescription at the front desk.

Health insurance companies paid Panezai more than $1.9 million in profits. In addition to the prison term, Panezai was also ordered to pay restitution of $1.95 million.

Earlier this month: Matawan Doctor Accused Of Touching Patient, Admits Insurance Fraud (Nov. 1)

Panezai stopped practicing medicine last January, and he closed his Matawan cardiology practice on January 31, 2024. He will never be allowed to practice medicine again in New Jersey, but he may be allowed to reopen a new practice in other states in America, should he so choose.

The public can read the order from the state to permanently revoke his medical license.