BROOKLYN – The United States Attorney for the Southern District of New York, announced that physician Mustak Y. Vaid was sentenced today by U.S. District Judge Lorna G. Schofield to 18 months in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program.
Vaid falsely posed as the owner of a medical clinic, when that clinic was in fact owned by a corrupt businessman, and falsely claimed that he had examined and treated hundreds of patients whom he had not in fact seen. Vaid pled guilty on November 13, 2017, to health care fraud and conspiracy to commit health care fraud, mail fraud, and wire fraud
Between 2007 and 2013, Aleksandr Burman owned and operated six medical clinics in Brooklyn that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed.
Under New York State law, medical clinics must be owned and operated by a medical professional. To circumvent this requirement, Burman, who was not a medical professional, hired doctors to pose as the nominal owners of each of the Clinics. Vaid was one of those doctors, agreeing to sign a variety of fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that Vaid was the sole owner of Ocean Side Medical of Brooklyn, P.C., one of the six Clinics. Vaid and his co-conspirators also helped prepare false medical records to support fraudulent reimbursement claims provided to Medicare and Medicaid. Vaid signed medical charts falsely stating that he had examined patients and wrote prescriptions and referrals for medically unnecessary and/or non-existent tests and supplies.
VAID is the seventh defendant, and the first physician, who has been sentenced after pleading guilty in this case and a related case.
In addition to the prison term, Vaid, 45, of Roundtown, Michigan, was sentenced to three years of supervised release. Judge Schofield also ordered Vaid to pay restitution of $2,669,231 and to forfeit $103,843 in ill-gotten gains.