Indian national sentenced in $620,000 New Jersey pharmacy fraud

A New Jersey pharmacy owner has been sentenced to 30 months in federal prison after admitting to a healthcare fraud scheme that involved falsifying records and submitting fraudulent insurance claims, resulting in losses exceeding $620,000. Federal authorities said Kirtan S. Patel, 34, of Allentown, New Jersey, who originally hails from India and is a lawful permanent U.S. resident, was also ordered to pay full restitution and forfeit more than $620,000 as part of the sentence.

According to federal prosecutors, Patel operated a pharmacy in Jersey City where fraudulent reimbursement claims for prescription medications were submitted to private health insurance providers. Investigators found that during an insurance audit in 2020, Patel attempted to conceal the scheme by creating false documents and fabricated records to support the claims. Authorities said the fraudulent billing caused significant financial losses while undermining the integrity of the healthcare system.

The investigation also uncovered text messages in which Patel allegedly referred to billing insurance for medications that were never used as "free money." Prosecutors further claimed he discussed offering cash payments, entertainment and other incentives to physicians in exchange for prescription referrals, highlighting the extent of the fraudulent operation. Officials said the evidence demonstrated a deliberate effort to exploit insurance programs for financial gain.

Patel's pharmacy technician, Christopher Lugo, 36, of Jersey City, was separately sentenced to 24 months in prison after pleading guilty to healthcare fraud. Authorities said Lugo participated in submitting a false insurance claim for medication that was neither prescribed nor dispensed, contributing to losses exceeding $565,000. He was also ordered to repay the financial losses caused through his involvement in the scheme.

The case was investigated by the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and Homeland Security Investigations. Federal officials said the sentencing reflects the Justice Department's continued efforts to crack down on healthcare fraud, warning that fraudulent billing schemes not only increase healthcare costs but also erode public trust in medical and insurance systems.