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NRI gets jail in
$200m healthcare scam
Houston: An Indian-American man has been sentenced by a US court
to 12 years in jail and ordered to pay $68 million for his
involvement in an elaborate Internet scam that obtained a whopping
$200 million by illegally selling addictive medicines to cyber
customers and drug users.
Rakesh Jyoti Saran (47) of Arlington in Texas was sentenced on
December 11 to 144 months in federal prison, said US Attorney
James T Jacks of the Northern District of Texas. He was also asked
to pay $68 million in restitution.
Saran, the last defendant to be sentenced in this case, pleaded
guilty to one count of conspiracy to commit healthcare fraud and
other federal offences, two counts of mail fraud and one count of
conspiracy to distribute controlled substances. He has been in
federal custody since May 2009. Saran was arrested in 2005 on
charges outlined in a 201-count federal indictment which alleged
that he and five co-defendants conspired from 1999 to 2005 to
commit healthcare fraud, wire fraud and money laundering and to
illegally distribute controlled substances in a drug diversion
scheme. According to plea papers filed in court, Saran operated 23
Texas-incorporated pharmacies through two firms he owned
Carrington Healthcare Systems and Infinity Services Group.
Sarans pharmacies purchased expensive pharmaceuticals including
addictive painkillers and psychiatric medications by fraudulently
representing to the wholesalers that the drugs were for
distribution to prisons, hospital and other facilities. PTI
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