U.S. Attorney Vanessa Roberts Avery | U.S. Department of Justice
U.S. Attorney Vanessa Roberts Avery | U.S. Department of Justice
Vanessa Roberts Avery, the United States Attorney for the District of Connecticut, along with other officials, announced that Dr. Naimetulla Ahmed Syed has agreed to a civil settlement involving payment of $455,439.26. This settlement resolves allegations against him under the federal and state False Claims Acts and the Controlled Substances Act (CSA). The allegations pertain to his issuance of medically unnecessary prescriptions.
Dr. Syed practiced psychiatry in Danbury and New Haven as a sole practitioner. It is alleged that from June 2016 to June 2021, he issued prescriptions without medical necessity, leading Cornerstone Pharmacy Inc., operating as Whalley Drug in New Haven, to submit false claims to Medicare and Medicaid. Furthermore, he allegedly billed these programs for unwarranted office visits related to these prescriptions.
Syed's practices reportedly included issuing prescriptions for controlled substances without legitimate medical purposes, contravening CSA obligations. He prescribed excessive benzodiazepines and other substances to individuals with signs of abuse or addiction and failed to maintain proper treatment records.
On June 16, 2021, Syed surrendered his DEA licenses voluntarily. As part of the settlement agreement, he will be excluded from participating in Medicare, Medicaid, and all federal health care programs for 20 years. Additionally, he agreed not to renew his physician license after ceasing practice on November 25, 2024.
In a previous case in 2016, Syed paid $422,641.70 concerning false claims for psychotherapy services submitted to Medicare and Medicaid.
Cornerstone Pharmacy and its owner Yong Kwon resolved similar allegations by paying $120,000 in April 2024 after filling invalid prescriptions. Kwon surrendered Whalley Drug's DEA license following an administrative inspection warrant execution by the DEA.
The investigation was conducted by several agencies including the Office of Inspector General for Health and Human Services and the DEA's Tactical Diversion Squad in New Haven. The case was prosecuted by Assistant U.S. Attorneys Sarah Gruber and David Nelson alongside Deputy Associate Attorney General Gregory O’Connell from Connecticut's Office of the Attorney General.
Individuals suspecting health care fraud are urged to report it via 1-800-HHS-TIPS.
Alerts Sign-up