The Sharmas were indicted in June on 29 counts of conspiracy to defraud Medicare, Medicaid and private insurers out of $31 million by claiming to have administered facet joint injections and blocks to patients at the Allergy, Asthma, Arthritis and Pain Centers in Webster and Baytown, Texas. Additionally, the married physicians are charged with routinely prescribing excessive amounts of hydrocodone, Soma and Xanax to patients that were not for legitimate medical purposes in exchange for cash payments, according to the release.
The new charges allege that the Sharmas illegally distributed hydrocodone and methadone to patients, along with charges that the couple attempted to launder money made from these transactions by moving funds between several accounts and sending the proceeds back to India. The new charges also expand the forfeiture notice provision of the original indictment to include 12 pieces of real estate including the defendants’ Kemah, Texas, residence and both of their clinics, 32 investment accounts, 23 bank accounts and the $1.5 million in cash seized from the defendants’ home and safe deposit boxes for a total of $31 million as proceeds or property derived from the illegal transactions.
The Sharmas are due to appear in court on Aug. 21, 2009, for arraignment on these charges and face up to 10 years in prison and a $250,000 fine if convicted of healthcare fraud. According to the report, the other crimes could carry the following maximum penalties:
- The fraud conspiracy and the mail fraud charges — up to 20 years in a federal prison and a $250,000 fine for each charge;
- The drug conspiracy and the 10 Schedule III drug distribution — up to five years imprisonment and a $250,000 fine;
- The three new Schedule II drug distribution counts — 20 years imprisonment and a $1 million fine; and
- The money laundering conspiracy and the individual money laundering counts — 10-20 years and a fine of $250,000-$500,000.
Read the U.S. Attorney’s office release about the two Texas physicians accused of healthcare fraud.
