A Houston doctor will pay over $2 million to settle allegations of fraudulent billing for surgeries he never performed, the U.S. Attorney said.
HOUSTON — A Houston anesthesiologist and pain medicine doctor has agreed to pay more than $2 million to settle allegations that he fraudulently billed federal health care programs for expensive surgical procedures he never actually performed, U.S. Attorney Nicholas J. Ganjei announced.
Dr. Ajay Aggarwal, 63, will pay $2,053,515 to resolve claims that he submitted false billing to Medicare and the Department of Labor’s Workers’ Compensation Programs between November 2021 and March 2023. The settlement involves his medical practice known as The Pain Relief & Wellness Center, which operates in Bellaire, Lake Jackson, and Van Vleck.
According to the allegations, Aggarwal billed federal programs for the surgical implantation of neurostimulator electrodes—invasive procedures that typically require an operating room and result in payments of thousands of dollars per procedure. However, prosecutors allege that neither Aggarwal nor his staff actually performed these complex surgeries.
Instead, patients allegedly received much simpler electro-acupuncture treatments that involved only inserting thin wire a few millimeters into patients’ ears and taping a neurostimulator device behind the ear with adhesive. These procedures took place in Aggarwal’s clinic rather than a hospital or surgical center, and no incisions were made on patients, according to the allegations.
“A doctor who uses simple medical devices on his patients, yet bills Medicare for a sophisticated spinal surgery, is bilking the American taxpayer, plain and simple,” Ganjei said. “The Southern District of Texas will ensure that losses to federally funded healthcare programs from fraudulent billing, like what happened here, are recouped and that wrongdoers are held accountable.”
The case highlights ongoing efforts by federal agencies to combat health care fraud. Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General emphasized the deterrent effect of the settlement.
The investigation involved multiple federal agencies, including the Office of Inspector General of the U.S. Postal Service, Department of Labor, Department of Health and Human Services, Office of Personnel Management, and Department of Veterans Affairs. Assistant U.S. Attorney Laura E. Collins handled the matter for the government.
Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General said the settlement demonstrates the agency’s commitment to protecting federal health care programs.
Aggarwal operated his practice through multiple entities, including Ajay Aggarwal as a sole proprietorship and PRWCSWTX LLC. The allegations resolved by the settlement have not resulted in a determination of liability.