Bensalem Doc's Arrest Was Part Of Massive Fed Sting

BENSALEM, PA — The arrest of a Bensalem doctor after an FBI raid at his home on Wednesday was part of a massive federal sting of people accused of being involved with what prosecutors called opioid "pill mills."

Justice Department officials from seven jurisdictions on Thursday announced a coordinated healthcare fraud enforcement action they say involved more than $800 million in fraud and more than 3.2 million opioid pills.

In all, 48 people were charged with crimes as part of the sting.

Bensalem pain doctor Neil K. Anand, 42, was indicted Wednesday on one count of healthcare fraud and one count of conspiracy to distribute controlled substances. He is charged along with three people from Philadelphia — a nurse practitioner and two unlicensed foreign medical school graduates.

According to U.S. Attorney William McSwain, Anand and the other three submitted false claims to Medicare, and insurance programs provided by the U.S. government and Independence Blue Cross.

The claims were for what prosecutors call "goody bags" stuffed with medically unnecessary prescription drugs that were dispensed by sites owned by Anand. In all, the insurance programs paid more than $4 million for the drugs, McSwain said.

According to the prosecutors, patients were required to take the goody bags, which they didn't need, in order to get prescriptions for opioids and other controlled substances.

According to their indictments, Asif Kundi, 31, and Atif Mahmood Malik, 34, would write prescriptions for controlled substances that were pre-signed by Anand and Viktoriya Makarova, 33.

Anand and Makarova provided more than 10,000 prescriptions for Schedule II controlled substances, of which more than 7,000 were for oxycodone, according to prosecutors. The prescriptions totaled more than 634,000 oxycodone tablets, they said.

In all, the takedown announced Thursday included charges against 48 defendants for their roles in submitting more than $160 million in fraudulent insurance claims. Of the 48, 15 are doctors or medical professionals. At least 24 are accused on charges involving opioids, prosecutors said.

In the Eastern District of Pennsylvania, 17 defendants (five of whom are doctors or medical professionals) were arrested, and the conduct involved submission of more than $4 million in fraudulent claims and distribution of approximately 738,000 oxycodone pills to the streets of the district.

Thursday's announcement came one year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force. The force focuses on investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous drugs.

"As today’s takedown demonstrates, this strike force has produced precisely what we hoped it would – and by that I mean tangible results," said McSwain at a press conference Thursday in Newark. "We have brought together a wealth of resources, knowledge and subject-matter expertise – that of health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution."

Of the 13 other people charged in the Eastern District of Pennsylvania, 12 were charged with possessing oxycodone with intent to distribute. All of them were from Philadelphia and are accused of submitting forged prescriptions for oxycodone to various pharmacies outside Philadelphia.