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The Doctor Is In: Tax Evasion and Medical Malpractice
Dr. Sanjay Kumar, whose medical practice in North Carolina treated patients with chronic pain, was sentenced to 20 years in prison for tax evasion, money laundering, and unlawful distribution of opioids.
Kumar found himself on the brink of financial ruin after Blue Cross terminated his contract due to billing irregularities. Then, he fired his entire staff and became a one-person prescription machine. His new office hours were late afternoon and evening, and he only saw “patients” who paid him $200 cash for a monthly prescription for opioids. Dr. Kumar wrote 100 prescriptions for controlled substances in 2011. From 2013 to 2016, he prescribed more than 1.2 million oxycodone pills alone.
Kumar deposited the cash in multiple bank accounts, always making sure the deposits were under the minimum amount to trigger reporting to the Department of the Treasury. He spent over $175,000 on four cars, $70,000 at Best Buy, and hundreds of thousands of dollars in purchases from Amazon.
Kumar had $145,000 cash with him at his arrest, and another $450,000 was discovered in his home. Police also found 35 firearms and more than 40,000 rounds of ammunition.
Consult with Tax Preparation Services
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