On September 23, 2025, a federal court sentenced Dr. Neil K. Anand, 48, of Bensalem, Pennsylvania, to 168 months in prison for orchestrating a healthcare fraud scheme that combined billing fraud with unlawful distribution of controlled substances. The court also ordered him to pay over $2 million in restitution to defrauded health plans and forfeit an additional $2 million in proceeds from his illegal activities.
The “Goody Bag” Scheme
According to court documents and evidence presented at trial, Anand developed a scheme centered on what prosecutors called “Goody Bags”—bundles of medically unnecessary prescription medications dispensed to patients through in-house pharmacies that Anand owned. By controlling both the prescribing and dispensing functions, Anand eliminated external oversight that typically exists when prescriptions are filled at independent pharmacies.
The scheme targeted Medicare, the U.S. Office of Personnel Management health plans, Independence Blue Cross, and Anthem. These insurers paid over $2.4 million in reimbursements for medications that served no medical purpose for the patients receiving them.
Using Oxycodone as Leverage
The challenge in any scheme involving unnecessary medications is patient acceptance. To entice patients to accept the unwanted Goody Bags, Anand conspired to distribute oxycodone outside the usual course of medical practice and without a legitimate medical purpose. As part of the scheme, he prescribed 20,850 oxycodone tablets for nine different patients—quantities far exceeding legitimate pain management protocols.
The oxycodone prescriptions served as an inducement mechanism. Patients who wanted or needed pain medication found themselves accepting the Goody Bags as a condition for receiving oxycodone, facilitating the broader billing fraud even if they didn’t fully understand the insurance implications.
Operational Structure
In furtherance of the conspiracy, unlicensed medical interns wrote prescriptions for controlled substances using blank prescription pads that Anand had pre-signed. This practice allowed controlled substances to be prescribed without proper physician oversight or individual patient evaluation.
Pre-signing blank prescriptions inverted the standard medical process. Instead of a signature representing a clinical decision after examining a patient, it became an administrative tool allowing unlicensed staff to make prescribing decisions in Anand’s name. This system enabled the operation to process patients and generate insurance claims at scale.
The Cover-Up Attempt
After learning he was under federal investigation, Anand transferred approximately $1.2 million into an account held in the name of a relative and designated for the benefit of a minor relative. This attempt to conceal proceeds resulted in money laundering charges and four counts of unlawful monetary transactions involving criminally derived property.
Investigation and Prosecution
The investigation was conducted by three federal Inspector General offices: the Department of Health and Human Services, the United States Postal Service, and the Office of Personnel Management. Each agency brought specific expertise—HHS-OIG investigated Medicare fraud, USPS-OIG handled wire fraud aspects, and OPM-OIG examined fraud involving federal employee health benefits.
Trial Attorneys Paul J. Koob, Patrick J. Campbell, and Arun Bodapati of the Criminal Division’s Fraud Section prosecuted the case. In April 2025, a jury convicted Anand on conspiracy to commit healthcare fraud and wire fraud, three counts of healthcare fraud, one count of money laundering, four counts of unlawful monetary transactions, and conspiracy to distribute controlled substances.
The Strike Force Program Context
Anand’s prosecution occurred as part of the Health Care Fraud Strike Force Program, launched in March 2007. The program operates 9 strike forces across 27 federal districts, concentrating prosecutors, investigators, and data analysts who focus specifically on healthcare fraud. Since its inception, strike forces have charged more than 5,800 defendants who collectively billed federal healthcare programs and private insurers for more than $30 billion in fraudulent claims.
The Centers for Medicare & Medicaid Services works with HHS-OIG to take administrative action against providers involved in fraud, including exclusion from federal health programs.
Financial and Systemic Impact
The $2.4 million in fraudulent reimbursements represents costs ultimately passed to other policyholders through higher premiums or, in Medicare’s case, paid from taxpayer funds. The restitution order requires Anand to repay the defrauded insurers, while the forfeiture strips him of profits gained through fraud.
Healthcare fraud cases involving controlled substances present additional concerns. When physicians prescribe controlled substances outside legitimate medical practice, they potentially fuel addiction and contribute to public health crises. The 20,850 oxycodone tablets prescribed to nine patients represent a substantial quantity entering the community through improper channels.
Sentencing and Deterrence
The 168-month sentence reflects multiple factors: the loss amount, Anand’s abuse of his position of trust as a physician, and the combination of healthcare fraud with controlled substance violations. Physicians occupy positions of significant trust, and sentencing guidelines recognize violations of that trust as aggravating factors.
The substantial sentence serves a deterrent function, demonstrating that healthcare fraud involving controlled substances results in serious consequences beyond fines or professional discipline. The goal extends beyond punishing individual wrongdoing to protecting healthcare program integrity and medical practice standards.
Broader Implications
The case highlights vulnerabilities in healthcare oversight. Anand’s ownership of in-house pharmacies eliminated usual checks and balances. While vertical integration isn’t inherently fraudulent, it creates opportunities for abuse when combined with fraudulent intent. The use of unlicensed staff writing prescriptions on pre-signed pads represents clear violations of medical licensing laws that state boards and law enforcement continue working to identify and prevent.
Data analytics now allow investigators to identify unusual billing patterns and prescribing anomalies, helping detect fraud earlier. As schemes become more sophisticated, federal agencies continue developing better tools for identifying fraudulent patterns before they result in large-scale losses or patient harm.
The prosecution of Dr. Anand demonstrates that healthcare fraud enforcement remains active and that schemes combining billing fraud with controlled substance violations face serious consequences. For patients and insurers, the case illustrates why enforcement matters—protecting both the financial integrity of healthcare programs and patient safety.
More information about the Health Care Fraud Strike Force Program is available at www.justice.gov/criminal-fraud/health-care-fraud-unit.
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