Doctor Receives 18-month Prison Sentence for His Role in $30 Million Medicare and Medicaid Fraud Scheme

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Mustak Y. Vaid was sentenced to 18 months in prison on Wednesday for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program.

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Vaid falsely posed as the owner of a medical clinic. In reality, the clinic was owned by Aleksandr Burman, Vaid’s accomplice. Vaid falsely claimed he examined and treated hundreds of patients whom he had never seen.

Originally, Vaid pleaded guilty on November 13, 2017, to health care fraud and conspiracy to commit health care fraud, mail fraud and wire fraud.

“The Medicare and Medicaid programs are designed to provide essential medical care to the elderly and the needy, not to enrich corrupt doctors and other fraudsters,” U.S. Attorney Geoffrey S. Berman said. “The real victims of Mustak Vaid and his co-conspirators are U.S. taxpayers and needy patients with legitimate medical needs. Today’s sentence sends a strong message that those who cheat Medicare and Medicaid, including physicians and other health care providers who abuse their positions of trust, will be held accountable and will face serious penalties.”

Federal Indictment Details

Vaid is the seventh defendant, and the first physician, who has been sentenced after pleading guilty in this case and a related case. Burman, the ringleader of the scheme, was sentenced in a related case on May 8, 2017, to 10 years in prison.