United States Attorney's Office District of Connecticut
Press Release

Operation Free Shot: DOCTOR PLEADS GUILTY TO FEDERAL HEALTH CARE, TAX FRAUD CHARGES

Kevin J. O'Connor, United States Attorney for the District of Connecticut, Michael J. Wolf, Special Agent in Charge of the Federal Bureau of Investigation, Joseph Moraski, Special Agent in Charge of the U.S. Department of Health and Human Services' Office of Inspector General, Richard Blumenthal, Connecticut Attorney General, and Michael Bolduc, Epidemiologist with the Connecticut Department of Public Health's Immunization Program, today announced that SUVARNA SHAH, M.D., age 62, of 5 Pier Way Landing, Westport, Connecticut, has waived indictment and entered guilty pleas in United States District Court to charges of health care fraud and tax evasion. SHAH's pleas of guilty to one count of health care fraud and one count of tax evasion were accepted this morning by U.S. District Judge Christopher F. Droney in federal court in Hartford. SHAH also entered into a civil settlement agreement with the United States and the State of Connecticut to resolve her civil liability for allegedly submitting false claims to the Medicaid Program.

U.S. Attorney O'Connor explained that this case is part of "Operation Free Shot," a continuing investigation by the Health Care Fraud Task Force. Operation Free Shot focuses on Connecticut health care providers who bill Medicaid and other insurance programs for childhood vaccines the providers received free-of-charge from the Vaccines For Children (VFC) program, a joint federal/state program that provides childhood immunizations. Under the VFC Program, doctors and other health care providers receive free vaccines distributed by the Department of Public Health, and agree not to bill Medicaid or any other third-party for the cost of the vaccines. The provider may recover a minimal fee for administrative costs associated with inoculating a child. In violation of these rules, SHAH billed Medicaid and other insurance plans for the vaccine doses she received free from the VFC Program. From 1997 through 2002, SHAH received over $350,00 from Medicaid and private insurance companies for vaccines she received free-of-charge from the VFC program.

As part of the resolution of her case, SHAH has agreed to enter a civil settlement agreement in which SHAH will pay double damages to the United States and the State of Connecticut, in order to reimburse the Medicaid program. SHAH will pay $317,925.88 to the United States and the State. SHAH has also agreed to reimburse all of the private insurance companies she billed (in the amount of approximately $230,000).

As part of the resolution of the tax evasion charges, SHAH will pay all back taxes, penalties, and interest, which will total approximately $700,000. When she is sentenced, SHAH faces a maximum sentence of 10 years of imprisonment and a $250,000 fine.

U.S. Attorney O'Connor noted that Operation Free Shot involves coordination among various federal and state authorities and agencies, and praised in particular the cooperation and assistance provided by the Connecticut Department of Public Health and HealthNet, a Medicaid Managed Care Organization.

"This criminal prosecution for the misuse of VCF funds is the first of its kind, and is an example of Connecticut leading the nation in an integrated fight against health care fraud, in particular fraud upon the Medicaid program," U.S. Attorney O'Connor stated.

U.S. Attorney O'Connor noted the investigation is ongoing, and charges against additional individuals may be forthcoming.

"The plea today of Dr. Shah is yet another example of the pervasiveness of fraud that plagues our health care system, and has driven the cost of medical coverage nationwide to over $1.8 trillion annually," said FBI Special Agent in Charge Wolf. "Health care fraud remains one of the FBI's top criminal priorities, with losses of more than $100 billion per year."

"By cheating a program intended to deliver essential vaccines to needy children, Dr. Shah allowed greed to override common decency and, in the process, terminally disgraced herself," said Special Agent in Charge Joseph Moraski of the U.S. Department of Health and Human Services' Office of Inspector General. "This enforcement action should serve as a reminder to those health care providers who defraud the Medicare and Medicaid Programs that they face serious consequences."

"This brazen corruption betrayed a health care program designed to benefit our children," Connecticut Attorney General Richard Blumenthal said. "Our fight against fraud in the vaccine program – Operation Free Shot – is active and ongoing. This doctor sought to deceive everyone else, but deceived herself most in thinking she would not be detected and prosecuted."

Michael Bolduc, Epidemiologist with the Immunization Program stated "We appreciate the opportunity to work with the FBI and Department of Justice on these types of investigations to help preserve the integrity of the Vaccine for Children program. The VFC program has been instrumental in helping Connecticut achieve and maintain one of the highest immunization rates in the country. The vast majority of providers do follow the guidelines set forth for the VFC program."

The Health Care Fraud Task Force, coordinated by the Federal Bureau of Investigation and the Inspector General of the U.S. Department of Health and Human Services, addresses abuses of the health care system in Connecticut. Participants in the Task Force include the Connecticut Department of Public Health, the Connecticut Chief States Attorneys Office – Medicaid Fraud Control Unit, the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, the Connecticut Department of Social Services, the Connecticut Attorney General's Office – Drug Control Division, the U.S. Internal Revenue Service, the U.S. Drug Enforcement Administration and the U.S. Defense Criminal Investigative Service.

United States Attorney O'Connor stated that anyone with information of health care fraud is encouraged to contact the FBI Health Care Fraud hotline at (203) 785-9270.

The case is being prosecuted by Assistant United States Attorneys David J. Sheldon of the Criminal Division, and Richard M. Molot of the Civil Division.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov