An Indian national who owned a pharmacy in New Jersey has been sentenced to 30 months in federal prison for falsifying audit documents and submitting fraudulent health insurance claims in a scheme that caused more than $620,000 in losses, the U.S. Department of Justice said Tuesday.
Kirtan S. Patel, 34, of Allentown, New Jersey, a lawful permanent resident originally from India, was also ordered to pay more than $620,000 in restitution and forfeit an equal amount following his conviction.
According to court documents, Patel owned a pharmacy in Jersey City and orchestrated a healthcare fraud scheme that included submitting false claims to insurers and providing falsified documents during an insurance audit in November 2020.
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Prosecutors said Patel used the pharmacy to submit fraudulent reimbursement claims for prescription medications and attempted to conceal the scheme by fabricating records requested during an audit. The fraudulent claims resulted in losses exceeding $620,000 to private health insurance companies.
The Justice Department also cited text messages in which Patel allegedly described billing his own insurance for medications he never used, calling it “free money.” Prosecutors further alleged that he discussed providing doctors with cash, nightclub outings and other benefits to influence prescription referrals.
Christopher Lugo, 36, of Jersey City, a pharmacy technician employed by Patel, received a 24-month prison sentence after pleading guilty to healthcare fraud. Authorities said Lugo submitted, or caused the submission of, a fraudulent insurance claim in January 2020 for medication that had neither been prescribed nor dispensed to him. The scheme involving Lugo resulted in more than $565,000 in losses to health insurers and Medicare. He was also ordered to pay more than $565,000 in restitution.
Patel pleaded guilty in April 2025 to making false statements relating to healthcare matters, while Lugo pleaded guilty to healthcare fraud.
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The case was investigated by the FBI’s Newark Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and Homeland Security Investigations. Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division announced the sentencing alongside federal investigators.
The sentencing comes as the Justice Department continues to intensify its crackdown on healthcare fraud schemes targeting public and private insurance programs, with federal authorities warning that fraudulent billing practices increase healthcare costs and undermine trust in the healthcare system.