Dozens sentenced for their roles in Atlanta-based fraud and money laundering operation that stole over $30 million from individuals and companies
ATLANTA – Nagaindra Srivastav has been sentenced on conspiracy and kickback charges for his role in selling fraudulent doctors’ orders to his co-conspirators who used the orders to obtain more than $48 million in fraudulent payments from Medicare.
“Srivastav knowingly sold fake doctors’ orders to conspirators around the United States,” said U.S. Attorney Ryan K. Buchanan. “These orders were used to cause massive losses to the Medicare program and to taxpayers. Health care and telemedicine fraud is a high priority for the Department and this office, and we will vigorously pursue those who exploit our health care system for personal gain.”
“This defendant left a number of victims in his wake, including American taxpayers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Health care costs are driven up when doctors and staff bill for unnecessary services and the FBI and our partners will continue to use every resource in our power to stop it.”
"This individual exploited the Medicare program for personal financial gain. Not only does this behavior undermine the integrity of federal health care programs; it also wastes valuable taxpayer dollars," said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "As this case demonstrates, HHS-OIG and our law enforcement partners will not tolerate attempts to steal from federal health care programs and defraud the American taxpayer."
According to U.S. Attorney Buchanan, the charges and other information presented in court: Srivastav was the owner of B2B Apps Solutions (“B2B”), a Florida-based company. Through B2B, Srivastav and his co-conspirators created and operated an internet-based platform that individuals and businesses in the health care industry used for the purchase and sale of physician orders for Durable Medical Equipment (“DME”), such as ankle, back, knee, and leg braces.
Through B2B, Srivastav paid and received remuneration for the referral of federal health care business. To accomplish this scheme, Srivastav created a website, RepsHub, in which DME companies and others uploaded potential DME-patient information, called “leads,” which were generally obtained through telemarketing campaigns targeting beneficiaries for whom DME products could be billed. In addition, and in conjunction with his selling of physician orders, Srivastav also offered and sold leads, which he obtained through call centers controlled by himself and his co-conspirators.
Srivastav purchased the physicians’ orders that he sold to his customers from purported telemedicine companies based in the Philippines and Pakistan. These orders lacked medical necessity, and Srivastav was notified on numerous occasions that the purported authorizing physician had not actually spoken with the patient, signed the order, or prescribed the braces. The physicians’ orders that Srivastav sold were used to obtain more than $48 million in fraudulently obtained payments from Medicare.
Nagaindra Srivastav, 58, of Tampa, Florida, has been sentenced by U.S. District Judge Steve C. Jones to nine years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $48,150,692.49. On October 19, 2022, Srivastav was convicted of conspiracy to pay and receive kickbacks, in violation of Title 18 United States Code, Section 371, and solicitation and receipt of kickbacks, in violation of Title 42, United States Code, Section 1320a-7b, after he pleaded guilty.
Judge Jones also sentenced Brian Tisdale, 46, of Amory, Mississippi. Tisdale was one of Srivastav’s customers who operated two DME companies in Mississippi and Georgia. Tisdale received a sentence of three years and six months in prison, to be followed by three years of supervised release. Tisdale was also ordered to pay restitution in the amount of $4,675,093.80. On December 16, 2022, Tisdale was convicted of conspiracy to commit health care fraud and to pay kickbacks, in violation of Title 18, United States Code, Section 371, after he pleaded guilty.
This case was investigated by the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney David A. O'Neal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.