U.S. Department
of Justice
United States v. Chesapeake Regional Medical Center, Crim. No. 2:25-cr-1
On January 8, 2025, the defendant Chesapeake Regional Medical Center (a/k/a Chesapeake General Hospital, Chesapeake Regional Healthcare) (“CRMC”) was charged in a two-count criminal indictment charging it with one count of conspiracy to defraud the United States and interfere with government functions, in violation of 18 U.S.C. § 371, and one count of health care fraud, in violation of 18 U.S.C. § 1347, related to its alleged actions involving CRMC’s billing to insurance companies for Dr. Javaid Perwaiz ’s performance of surgeries and other procedures at its facility. In November 2020, Perwaiz was convicted of 52 counts of health care fraud and false statements in health care matters in 2:19-cr-189 in the U.S. District Court for the Eastern District of Virginia. Approximately 38 counts of the convictions were for procedures performed at CRMC, including unnecessary hysterectomies and other invasive and irreversible surgeries, elective inductions prior to 39 weeks of gestation without medical justification, and sterilizations of Medicaid patients without consent forms signed 30 days in advance. CRMC made its appearance before the Court and entered a plea of not guilty.
According to the indictment, CRMC was a hospital in Chesapeake, Virginia. In order to perform a procedure at CRMC, a physician must either be a CRMC employee or have privileges at the hospital. In April 1984, CRMC granted privileges to Perwaiz. Perwaiz performed all of his obstetric deliveries and inpatient surgeries, including hysterectomies, and other surgeries and procedures, at CRMC. The vast majority of these procedures took place on Saturdays when he had a reserved surgical block time at CRMC. He often performed as many as ten surgeries per Saturday.
While Perwaiz’s application for privileges at CRMC was pending, in December 1983, CRMC’s President, who remained the President/Chief Executive Officer (CEO) until 2005, was notified by Maryview Hospital in Portsmouth, Virginia, that Perwaiz’s privileges at Maryview had been terminated earlier that year. Maryview terminated Perwaiz’s privileges for performing unnecessary gynecological surgeries, including irreversible hysterectomies on approximately a dozen patients, including young patients of child-bearing age. After review of Perwaiz’s application, CRMC’s Department of Surgery initially declared him unacceptable for appointment, noting his suspension at Maryview for “unnecessary surgery.” Nonetheless, in April 1984, CRMC granted Perwaiz privileges to perform surgeries there.
In 1995, Perwaiz was indicted on six counts of felony tax fraud in the U.S. District Court for the Eastern District of Virginia. He pleaded guilty to two of the counts, and admitted in public filings to extensive fraudulent conduct, including, among other things, falsely claiming a Ferrari luxury sports car as an ultrasound machine so that he could write it off as a business expense. CRMC’s President wrote and submitted a letter of support for Perwaiz’s 1996 sentencing, calling Perwaiz his “personal friend,” and CRMC’s Chief of the Department of OB/GYN attended the sentencing hearing. On April 10, 1996, the Court sentenced Perwaiz to four months of home confinement, probation, and community service.
Following Perwaiz’s felony conviction, on April 29, 1996, the Virginia Board of Medicine (the “Board”) revoked Perwaiz’s medical license. In June 1996, it held a hearing to determine whether Perwaiz’s license should be reinstated, and ultimately reinstated it in July 1996 with stipulated terms and conditions. For the hearing, CRMC’s President filed another letter of support in June 1996 that contained, among other things, a “physician profitability” analysis. The President indicated that for calendar year 1995, CRMC was able to charge over $760,000 (or nearly $1.5 million in today’s dollars) for Perwaiz’s surgeries, resulting in a profit for the hospital of over $400 (or over $820 in today’s dollars) “per case.”
A local OB/GYN with privileges at CRMC, W.R., also provided information regarding Perwaiz to the Board. W.R. estimated that about 2/3 of Perwaiz’s patients’ surgeries were medically unnecessary. He highlighted that Perwaiz had a high rate of surgery on young women with minimal problems, repeatedly operated on the same patients and conducted recurring surgeries on benign cysts, all of which “adds up to a very dangerous situation for patients.” W.R. stated that four other doctors in his practice shared his concerns. CRMC wrote a letter of reprimand to W.R. because his statements were “reasonably likely to be harmful to the Hospital’s best interests and inconsistent with the Hospital’s objectives.’” and is recommending that you receive a letter of admonition and reprimand…You are hereby warned to refrain from making such unsupportable statements in any forum, and most importantly, in a public forum. If the Hospital Authority becomes aware of similar action on your part in the future, you may expect initiation of more severe corrective action.” W.R. continued to express his concerns about Perwaiz’s medical practices. Despite these warnings and other knowledge of Perwaiz’s criminal actions, CRMC allowed him to continue to use their facility until his arrest in November 2019.
From 2010 to 2019, CRMC received approximately $18.5 million in reimbursements from health care benefit programs for surgical and obstetric procedures Perwaiz performed at the facility.
Court Documents
Court Order re: Victim Notification
Response to Emergency Motion to Dismiss
Victim Information
Pursuant to the Crime Victims’ Rights Act, 18 U.S.C. § 3771, the Department of Justice is required to provide notice to individuals who may have been harmed as a direct result of the criminal offenses of which a defendant has been convicted. In this context, “harmed” is defined broadly and is not limited to monetary loss. This office uses the Victim Notification System (“VNS”) and other methods, including web pages and press releases, to ensure potential victims receive timely notice of public events related to a case. For more information, go to Victims Rights Act
A different federal law, the Mandatory Victim Restitution Act (“MVRA”), 18 U.S.C. § 3663A, governs restitution in this case. Restitution is a determination by the judge that a victim is entitled to monetary compensation for losses suffered as a direct result of a crime for which a defendant has been convicted. It is not a guarantee of payment. Under the MVRA, if a defendant is convicted of a crime carrying restitution as a penalty, the judge at sentencing determines who is a victim and in what amount they are entitled to restitution. In cases involving property crimes, including the fraud offenses with which the defendant is charged, restitution may generally only be awarded for the value of the property lost by the victim as a direct result of a defendant’s crime of conviction less the value of any property returned to the victim. Victims may also be entitled to restitution for expenses incurred while participating in the criminal investigation or prosecution or traveling to court proceedings for the case, such as lost income, childcare, transportation, and other expenses. Restitution is generally not available for medical care, pain and suffering, emotional distress, or lost income caused by the defendant’s conduct, except in the limited context described above.
Contact Information
The U.S. Department of Justice and the U.S. Attorney’s Office for the Eastern District of Virginia are committed to protecting the rights of crime victims and providing them with information necessary to exercise those rights. We invite those potential crime victims to contact the prosecution through our Victim/Witness Unit to ensure they are notified of important stages of the case. In addition, our Victim/Witness Unit can help make references to agencies that provide other services to witnesses. We suggest that any potential victim fill out the Potential Victim Form and submit it to our Victim/Witness Unit. Those who successfully register as potential victims will have access to the Victim Notification System (“VNS”).
The VNS is designed to provide information regarding the case as it proceeds through the criminal justice system. Registered victims may obtain current information about this matter on the Internet at www.Notify.usdoj.gov or from the VNS Call Center at 1-866-DOJ-4YOU (1-866-365-4968) (TDD/TTY:1-866-228-4619; International 1-502-213-2767). In addition, they may use the Call Center or Internet to update their contact information and/or change their decision about participation in the notification program. In order to access VNS, a crime victim must receive a Victim Identification Number (VIN) and Personal Identification Number (PIN) from our Victim/Witness Unit. Again, to register, please complete the Potential Victim Form and submit it to the email or mailing address below.
To submit a Potential Victim Form or obtain other assistance, please contact:
Victim/Witness Coordinator
United States Attorney’s Office
101 West Main St., Norfolk, VA 23510
(757) 441-6331
Darcel.Sessoms@usdoj.gov
Resources
Victim Impact Statements Know Your Rights EDVA
Exercising Your Right to be Heard EDVA
Next Court Date
August 5, 2025 – Evidentiary Hearing on CRMC’s Motion to Dismiss
Medical Records
The U.S. Attorney’s Office has copies of patient medical records from 2015 -2019. Current or former patients seeking a copy of their medical record should email usavae.perwaiz.medical.records@usdoj.gov with their full name and dates of service. This is not a guarantee that a copy of your records will be available, but the office will put forth its best efforts to locate the records.