Doctor, patients charged with Medicaid fraud

June 4, 2011 9:33:01 AM PDT
A doctor from Manhattan and dozens of his patients are charged with faking their infection with the virus that causes AIDS, and then billing Medicaid for expensive treatment therapies.

It's an embarrassing fall from grace for a man residents in thearea relied on for help.

The Manhattan District Attorney's office alleges that Dr. Suresh K. Hemrajani's scheme dates back to at least 2008 and defrauded Medicaid out of hundreds of thousands of dollars.

Investigators say he billed Medicaid for patient visits that didn't take place and billed the cost of medications to Medicaid.

Here's how investigators say he did it: He would prescribe HIV medication for patients who would then go to hospitals and pharmacies.

The prescription would be filled, paid for by Medicaid, and then the drugs would be sold on the black market for a profit.

Sources say 30 patients have been charged in connection with the case, and say it may involve as many as 100.

The district attorney's office say Hemrajani victimized not only the neediest members of the community, but also all New York taxpayers.

Hemrajani is charged with grand larceny, fraud and falisfying business records. He has pleaded not guilty to those charges.