Los Banos, Calif.-based physician Sohail Mamdani, DO, was charged with mail fraud and money laundering in connection with a $53 million disability insurance fraud scheme, the U.S. Justice Department said Oct. 27.
Dr. Mamdani, who operated a walk-in medical clinic, was also charged with unlawful use of a DEA registration and fraudulently obtaining possession of a controlled substance.
From February 2020 to March 2022, Dr. Mamdani allegedly submitted over 6,000 initial claims to the California Employment Development Department for disability insurance payments despite never seeing nor treating the majority of the beneficiaries. He would allegedly charge the purported patient a fee for the claim.
A federal investigation revealed the potential losses to the department of up to $99 million with potential actual losses of over $53 million.
Dr. Mamdani is separately charged with unlawfully using another physician's DEA registration number to unlawfully obtain controlled substances. He faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000, or up to twice the gross gain or gross loss caused by the fraud