Missouri Pain Medicine Doctor and Wife Indicted for Purchasing Illegal Medical Devices and Healthcare Fraud

St. Louis, MO –Dr. Abdul Naushad, 55, and his wife, Wajiha Naushad, 44, both of Town and Country, MO, were indicted today in a 21-count indictment for purchasing non-FDA approved medical devices, Orthovisc, from Canada and England and smuggling the same devices into the United States.  The couple was also charged with health care fraud related to billing for the same devices, when they knew Medicare and Medicaid would not reimburse for the non-FDA approved devices. Orthovisc, in a pre-filled syringe, is injected into the knee to relieve osteoarthritis pain and is available only by prescription. Dr. Naushad did not disclose to his patients that they were receiving non-FDA approved Orthovisc.  

Dr. Naushad and Wajiha Naushad own and operate a number of pain management clinics, at times simultaneously owning as many as six pain management clinics in Missouri. All the clinics operate under the name Advanced Pain Center or APC.

In 2010, Dr. Naushad, Wajiha Naushad, their pain management clinics, and their billing company reached an $820,000 civil agreement with the United States for submitting false reimbursement claims to Medicare, Medicaid, and TRICARE. The claims falsely indicated that a physical therapist provided one-on-one services to patients, when they knew the services were provided on a machine that was experimental and not covered by federal health care programs.  

If convicted, Dr. Naushad and his wife will be excluded from participating in any way with the federal health care programs for a minimum of five years.

In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case is being investigated by the Food and Drug Administration, the Drug Enforcement Administration, the Department of Health and Human Services, and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry is handling the case.  

Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.