United States Attorney's Office District of Connecticut
Press Release

Operation Free Shot: WESTPORT DOCTOR SENTENCED TO PROBATION FOR FEDERAL HEALTH CARE, TAX FRAUD CHARGES

Kevin J. O'Connor, United States Attorney for the District of Connecticut, today announced that SUVARNA SHAH, M.D., age 63, of 5 Pier Way Landing, Westport, Connecticut, was sentenced today to a term of three years' probation and a $10,000 fine by U.S. District Judge Christopher F. Droney in Hartford, on charges of defrauding the Medicaid program and private health insurance companies, and on tax evasion charges.

SHAH had previously entered into a civil settlement agreement in which she agreed to pay $317,925.88 to the United States and the State of Connecticut, and had provided restitution in the amount of $229,194.86 to private insurance companies as well for claims SHAH submitted for vaccines she received free-of-charge from the Vaccines For Children program. In addition, SHAH paid $682,595.16 to the Internal Revenue Service to settle her liability, including interest and penalties, for tax evasion for the years 1996 through 2001.

As a result of her conviction, SHAH faces likely deportation. SHAH will also likely be barred from submitting claims to the federal Medicare and Medicaid programs.

Under the federal sentencing guidelines, SHAH had faced a sentence of 18 to 24 months imprisonment. In departing downward from the recommended sentencing range, Judge Droney cited the "truly exceptional" contributions SHAH had made by providing medical services to the under-served South Norwalk community, and that SHAH was forced to close her medical practice, and will likely be deported.

"Health care providers who commit fraud face severe penalties," U.S. Attorney O'Connor stated. "This office will not hesitate to prosecute such conduct."

U.S. Attorney O'Connor explained that this case is part of "Operation Free Shot," an 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.

U.S. Attorney O'Connor noted that Operation Free Shot involved coordination among various federal and state authorities and agencies, and praised in the cooperation and assistance from all involved. "An integrated approach to fighting health care fraud is a powerful deterrent," said O'Connor. "And Connecticut intends to lead the nation in aggressively investigating and prosecuting such cases."

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 State's Attorney's 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. The tax evasion charges in this case were investigated by the Office of Criminal Investigations of the Internal Revenue 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 was prosecuted by Assistant United States Attorneys David J. Sheldon of the Criminal Division, and Richard M. Molot of the Civil Division, and auditor Susan Spiegel.

CONTACT:

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