Dr Ajay Kumar Aggarwal, a Houston-based pain specialist, pays hefty settlement in healthcare fraud case involving unnecessary prescriptions
Houston-based Indian-origin pain medicine specialist Dr Ajay Kumar Aggarwal, 63, has agreed to pay over $2 million (₹17.4 crore) to settle allegations of healthcare billing fraud, US authorities confirmed. The case also involved Medley Compounding Pharmacy LLC, which, along with Aggarwal, paid a combined $7.96 million for improper claims submitted to the US Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP) , reported gujaratsamachar.com.
Fraud uncovered through whistleblower lawsuit involving Medley Pharmacy’s practices.
Investigators found that prescriptions issued by Aggarwal and filled by Medley Pharmacy—formally owned on paper by his wife—were for compound creams, gels, and pain patches that were neither medically necessary nor beneficial to patients
The pharmacy began billing DOL in 2013, a year after its opening.
The fraud surfaced after a whistleblower lawsuit filed in October 2017 by a former Medley employee, who alleged that patients received excessive medications by mail, often without ever meeting Aggarwal.
Employees were reportedly directed to auto-refill prescriptions monthly using pre-printed pads, bypassing medical evaluations.
Authorities condemn misconduct
US Attorney Alamdar S Hamdani described Aggarwal’s conduct as “particularly egregious”, stressing that providers in federally funded programmes are entrusted with the responsibility of delivering safe and legitimate treatments. He added that the hefty penalty underscores the government’s commitment to deterring fraud.
Jonathan Ulrich, Special Agent in Charge at the US Postal Service Office of Inspector General, said the case demonstrates the determination of law enforcement to root out fraud, waste, and abuse in government healthcare programmes.
