NJ Pharmacy Owner Sentenced to 30 Months for $620K Health Care Fraud

Kirtan S. Patel, 34, of Allentown, New Jersey, was also ordered to pay more than $620,000 in restitution and forfeit an equal amount, the U.S. Department of Justice said Tuesday. Patel, a lawful permanent resident originally from India, owned a pharmacy in Jersey City.

According to court documents, Patel submitted fraudulent reimbursement claims for prescription medications to private health insurance companies. During an insurance audit in November 2020, he provided falsified documents, including fabricated prescription logs, to conceal the scheme.

Prosecutors cited text messages in which Patel described billing his own insurance for medications he never used, calling it 'free money.' They also alleged he discussed providing doctors with cash, nightclub outings and other benefits to influence prescription referrals.

Christopher Lugo, 36, of Jersey City, a pharmacy technician employed by Patel, received a 24-month prison sentence after pleading guilty to healthcare fraud. Lugo submitted a fraudulent insurance claim in January 2020 for medication that had not been prescribed or dispensed to him, causing more than $565,000 in losses to health insurers and Medicare. He was ordered to pay more than $565,000 in restitution.

Patel pleaded guilty in April 2025 to making false statements relating to healthcare matters. The case was investigated by the FBI, the HHS Office of Inspector General, and Homeland Security Investigations.