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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of New York

Friday, May 22, 2015

Central New York Doctor Sentenced To 18 Months Imprisonment

Committed Health Care Fraud and Unlawfully Distributed Controlled Substances

SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced the sentencing today of Mahesh Kuthuru, age 43, a physician of a Utica and Fulton area pain management practice.

Mahesh Kuthuru, owner and operator of Upstate Pain Management with offices in Fulton and Utica, was sentenced by United States District Court Judge David N. Hurd to eighteen (18) months for Health Care Fraud, and twelve (12) months for Unlawful Distribution of Controlled Substances, to run concurrently, ordered to pay $84,265.11 restitution due to Medicare, along with a $125.00 Special Assessment. The defendant will serve three (3) years of supervised release upon release from prison. He was remanded to the custody of the United States Marshals upon being sentenced.

"The public expects physicians to apply high standards of professionalism in their interactions with their patients and delivery of health care services. Actions such as these demonstrate a complete disregard to the quality of care for patients. These criminal activities place additional burden on the public seeking competent health services, resulting in rising costs of health care," explained United States Attorney Hartunian. "Health care fraud remains a priority of my office and we will continue to aggressively prosecute such cases."

On January 22, 2015, Kuthuru pled guilty to Count 4 of the Superseding Indictment, specifically that he executed a scheme to defraud Medicare, and other health care benefit programs by submitting a claim that the defendant had rendered medical services to a patient, when, in fact, neither he, nor any physician, nor any licensed non-physician practitioner acting under his direct supervision, had rendered those services. On that same date, Kuthuru also pled guilty to Count 1 of the Information of unlawfully distributing controlled substances, a misdemeanor.

According to the Indictment, Kuthuru, and co-defendant Meislin, engaged in a scheme to defraud Medicare by submitting claims for reimbursement that falsely represented that Dr. Kuthuru had performed medical services when in fact he had not. Kuthuru purchased a medical practice in Las Vegas, Nevada, in November 2008. In July 2009 Kuthuru sold his home in Baldwinsville and purchased a home in Las Vegas. By January 2010 through at least September 2011, Kuthuru was spending the majority of his time at his Las Vegas medical practice, coming back to the Utica and Fulton offices to treat patients only on a sporadic basis. From January 2010 through September 2011 there were substantial periods of time when there were no licensed medical personnel whatsoever in the Utica and Fulton offices. Patients there were seen only by unlicensed staff members who had received no formal medical training. The Indictment further charged Kuthuru with unlawful distribution of Schedule II controlled substances including Oxycodone, Oxycotin, Methadone and Morphine Sulphate.

Co-defendant Bonnie Meislin was found guilty by a jury on February 25, 2015 to Counts 1-2, 4-6, 10-17, 19, 22-30, and 31 of the Superseding Indictment. Meislin’s sentencing is set for July 1, 2015 in Utica.

The case was a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New York State Bureau of Narcotics Enforcement, United States Department of Health and Human Services, New York State Worker’s Compensation Board, Safeguard Services, and Excellus Blue Cross & Blue Shield Special Investigations. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.

Updated May 26, 2015