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Indian-origin New Jersey pharmacist sentenced for $1.18M fraud
New Jersey pharmacy owner and technician received prison terms after submitting fraudulent health insurance records.
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Ankita Baidya - Wed, 15, Jul 2026
- 04:29 EDT
- 37
Kirtan S. Patel and pharmacy technician Christopher Lugo were sentenced in a federal health care fraud case. / Unsplash
An Indian-origin pharmacy owner and his employee have been sentenced to federal prison for their roles in a health care fraud scheme that caused more than $1.18 million in losses to insurers and Medicare, according to the U.S. Department of Justice.
The Justice Department said Kirtan S. Patel, 34, of Allentown, New Jersey, a lawful permanent resident originally from India, and Christopher Lugo, 36, of Jersey City, were sentenced after pleading guilty to offenses connected to fraudulent insurance claims and falsified pharmacy records submitted to health care benefit programs.
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According to court documents and statements presented in court, Patel owned and operated a pharmacy in Jersey City. In November 2020, he submitted, or caused to be submitted, falsified documents to a health insurance company during an audit. The documents falsely indicated that medical providers had authorized certain prescriptions. Patel also submitted fraudulent prescription pick-up records that claimed customers had collected medications they never received, the Justice Department said.
Federal prosecutors said Patel also used his own health insurance to submit false claims. During the scheme, he exchanged text messages with a friend stating that he billed "around 8-10k every month" to his own insurance without taking the medications, describing it as "basically free money."
According to the Justice Department, Patel also claimed in messages that he provided doctors with trips to strip clubs, nightclub outings, and cash to keep them "as corrupt as possible." Prosecutors said the fraud scheme caused more than $620,000 in losses to health insurance companies.
Patel was sentenced to 30 months in federal prison. The court also ordered him to pay more than $620,000 in restitution and forfeit an additional $620,000, according to the Justice Department. He pleaded guilty in April 2025 to making false statements relating to health care matters.
Another fraud scheme. Another conviction.
— Alb (@amandalouise416) July 15, 2026
India-born Kirtan S. Patel, 34, of Allentown, New Jersey, owner of a pharmacy in Jersey City, and his pharmacy technician were sentenced for a health care fraud scheme that caused more than $1.18 million in losses.
According to the…
Lugo, who worked as a pharmacy technician at Patel's pharmacy, admitted to submitting or causing the submission of a fraudulent insurance claim in January 2020 for a prescription drug that had neither been prescribed to him nor dispensed. Prosecutors said Lugo's conduct resulted in more than $565,000 in losses to health insurance companies and Medicare.
Lugo was sentenced to 24 months in prison and ordered to pay more than $565,000 in restitution. He pleaded guilty to health care fraud.
The investigation was conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and Homeland Security Investigations. The case was prosecuted by the Justice Department's Criminal Division Fraud Section.
The Justice Department said the announcement was made under the newly established National Fraud Enforcement Division, which coordinates federal efforts to investigate and prosecute fraud involving government and private health care benefit programs.
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