Matawan Cardiologist Sentenced to 35 Months in Prison for Defrauding Health Insurance Companies of More Than $1.9 Million through Health Care Fraud Scheme

TRENTON, N.J. - The owner and sole medical provider of a New Jersey medical practice was sentenced today to 35 months in prison for orchestrating a health care fraud scheme causing over $1.9 million in insurance reimbursements for false claims, U.S. Attorney Philip R. Sellinger announced.

Dr. Fazal Panezai, 76, of Morganville, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with participating in a health care fraud scheme. Judge Castner imposed the sentence today in Trenton federal court.

According to documents filed in the case and statements made in court:

Panezai, who owned and operated Matawan-Aberdeen Heart & Medical Center, for years submitted false claims to at least six health insurance benefit programs for office visits that either never occurred or did not take place for the length of time that he claimed.

For example, Panezai submitted claims for office visits lasting approximately 1,675 minutes - approximately 27.9 hours - for one day's worth of office visits on May 27, 2022. Panezai also billed health insurance providers over $80,000 for office visits when he was out of the country and not conducting any office visits. Panezai also submitted claims for office visits when patients only picked up a prescription for a controlled substance from the front desk and never met with him. The false claims caused insurance plans to issue reimbursement checks to the center. Panezai kept the illicit profits, which totaled more than $1.9 million.

In addition to the prison term, Judge Castner sentenced Panezai to three years of supervised release and ordered him to pay restitution of $1.95 million.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the sentencing. He also thanked the Matawan Police Department.

The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Criminal Division in Newark.