The United States Attorney's Office for the Northern District of California announced the unsealing of an indictment today charging Dilbagh S. Chattha, M.D., 51, of Pleasanton, California, with 10 counts of health care fraud in violation of 18 U.S.C. § 1347 and 10 counts of mail fraud in violation of 18 U.S.C. § 1341.  The indictment was originally returned by the grand jury on January 8, 2004.

According to the indictment, Dr. Chattha is alleged to have submitted bills for reimbursement by the Department of Labor in which he falsely claimed that he had performed higher levels of service and submitted special reports, including more information than that which is included in typical medical billing forms, in a number of workers compensation cases.

The maximum statutory penalty for each of the 20 counts charged is 20 years in prison, a fine of $250,000, a term of supervised release of three years, a special assessment of $100, and restitution.  However, any sentence following conviction would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court.  An indictment simply contains allegations against an individual and, as with all defendants, Dr. Chattha must be presumed innocent unless  convicted.

Dr. Chattha made his initial appearance in federal court in Oakland today.  Bail was set at $500,000.  The defendant's next scheduled appearance before United States Magistrate Judge Wayne D. Brazil is at 10:00 a.m. on January 20, 2004, for identification of counsel.

The prosecution is the result of an investigation by a task force of federal, state, and local law enforcement personnel, including agents of the United States Postal Service Office of Inspector General, Department of Labor Office of Inspector General, United States Postal Inspection Service, United States Department of Health and Human Service Office of Inspector General, Internal Revenue Service, Bureau of Immigration and Customs Enforcement, United States Drug Enforcement Administration, Medical Board of California,  Fremont Police Department, Pleasanton Police Department, and Alameda County District Attorney's Office.  Lewis A. Davis is the Assistant U.S. Attorney prosecuting the case.