A Pennsylvania-based doctor has been convicted by a federal jury for his role in a complex scheme involving health care fraud, illegal drug prescriptions, and money laundering. Dr. Neil K. Anand, 48, of Bensalem, was found guilty of multiple federal crimes that not only defrauded health insurers but also endangered public health by distributing controlled substances without medical justification.
What Was the Scheme?
According to the evidence presented at trial, Dr. Anand and his co-conspirators submitted false claims to Medicare and several private insurance providers, including the U.S. Office of Personnel Management (OPM), Independence Blue Cross (IBC), and Anthem. The fraudulent scheme involved so-called “Goody Bags”—bundles of medically unnecessary prescription drugs that were handed out to patients.
These medications, often not needed or even wanted by the patients, were dispensed through pharmacies owned by Anand himself. Patients were told they had to accept the Goody Bags in order to receive prescriptions for powerful pain medications like oxycodone, a widely abused opioid.
Fraudulent Prescriptions and Drug Abuse Risk
Dr. Anand went a step further by issuing prescriptions for over 20,000 oxycodone pills to just nine patients. These prescriptions were not based on any real medical need. To make matters worse, unlicensed medical interns were used to write these prescriptions using pre-signed blank prescription pads provided by Anand.
This illegal practice not only violated federal laws but also posed a serious danger to public health, especially during a national opioid crisis.
Concealing the Profits
After learning he was under federal investigation, Anand tried to hide the proceeds of the fraud. He transferred around $1.2 million into an account held in his father’s name, supposedly for the benefit of his minor daughter. This was a clear attempt to avoid detection and keep the funds out of reach of law enforcement.
Conviction and Charges
Dr. Anand was convicted of several serious federal crimes, including:
- Conspiracy to commit health care fraud and wire fraud
- Three counts of health care fraud
- One count of money laundering
- Four counts of unlawful monetary transactions
- Conspiracy to distribute controlled substances
Each of these charges carries significant prison time. If sentenced to the full extent of the law, Anand faces up to 130 years in federal prison. His sentencing is scheduled for August 19. A federal judge will determine the final sentence based on U.S. Sentencing Guidelines and other legal factors.
Investigation and Prosecution
The case was thoroughly investigated by several federal agencies, including:
- Department of Health and Human Services Office of Inspector General (HHS-OIG)
- U.S. Postal Service Office of Inspector General (Postal Service OIG)
- Office of Personnel Management OIG (OPM-OIG)
- FBI Philadelphia Field Office (assisted)
The prosecution team included attorneys from the Justice Department’s Criminal Division’s Fraud Section, known for leading efforts against health care fraud under the Health Care Fraud Strike Force Program.
Since its launch in 2007, this program has charged more than 5,800 defendants for fraud that cost U.S. healthcare programs over $30 billion.
The conviction of Dr. Neil K. Anand shows the seriousness of health care fraud and the illegal distribution of opioids. It serves as a warning to other medical professionals that abusing the system for personal gain will not go unpunished. The U.S. Department of Justice, along with several federal agencies, continues to strengthen its efforts to uncover, investigate, and prosecute those who exploit healthcare systems and contribute to drug abuse in our communities.
