Dr. Ramesh Sarvaiya (64), operator of Liberation Way, a drug and alcohol rehabilitation organization with treatment centers in Yardley, Bala Cynwyd, and Fort Washington, PA charged today with health care fraud.
Dr. Ramesh Sarvaiya, a resident of Voorhees, NJ was charged with one count of conspiracy to commit health care fraud in violation 18 U.S.C. § 371.
Besides Dr. Ramesh Sarvaiya, the federal indictment also charged Jessie Peters (44), of Lake Worth, FL with health care fraud separately.
According to federal indictment:
….each man participated in an elaborate scheme involving thousands of medically-unnecessary urine tests ordered by Dr. Sarvaiya and processed by a lab in Florida associated with Peters. The charging documents allege that defendant Sarvaiya ordered tests to be performed on samples obtained from Liberation Way patients, even though Sarvaiya never treated those patients. The tests were then sent to Florida-based laboratories for a battery of unnecessary tests, and Peters allegedly paid kickbacks to principals at Liberation Way in return for directing the samples to his company.
On the conspiracy count, Dr. Ramesh Sarvaiya faces a maximum possible sentence of five years in prison and a $250,000 fine, along with restitution of millions to the victims of this fraud.
Dr. Ramesh Sarvaiya must be presumed innocent unless and until proven guilty in a court of law.
The health care fraud case against Dr. Ramesh Sarvaiya was investigated by FBI, Department of Health and Human Services, Office of Personnel Management, and Department of Labor, in association with Pennsylvania Office of the Attorney General and the Florida State Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Nancy Winter of Eastern District of Pennsylvania.