Doc Admits Taking Cash Kickbacks, Failing to Report Nearly $1M in Income

72-year-old Livingston doctor faces up to five years in prison.

U.S. Attorney Paul J. Fishman / File photo
U.S. Attorney Paul J. Fishman / File photo
An Essex County doctor practicing family medicine in East Orange Monday admitted to receiving cash kickbacks for diagnostic testing referrals of his patients and failing to file tax returns on $1 million of income over a three-year period, U.S. Attorney Paul J. Fishman announced.  

Yash Khanna, 72, of Livingston pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a six-count superseding indictment charging him with conspiracy to violate the federal health care anti-kickback statute; soliciting and receiving more than $10,000 in illegal cash kickbacks for patient referrals in violation of the anti-kickback statute; and failing to file tax returns for tax years 2008, 2009, and 2010, Fishman said.

According to the Department of Justice:

From 2009 through 2011 Khanna owned and operated his own medical practice, Family Medicine and Pediatrics LLC. He agreed with representatives of a diagnostic testing facility called Orange Community MRI LLC that he would be paid cash in exchange for patients he referred for testing. He received cash kickbacks from Orange MRI for diagnostic tests performed on Medicare and Medicaid patients and met with an Orange MRI representative at his office on Oct. 4, 2011, and Nov. 10, 2011, taking envelopes with cash. Khanna acknowledged taking kickback cash from Orange MRI on other occasions as well.   

Khanna admitted to earning income of more than $381,000 in 2008, $400,000 in 2009, and $214,000 in 2010. He intentionally failed to file tax returns or ask for extensions during those years.    

The anti-kickback charges each carry a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. The tax charges each carry a maximum penalty of one year in prison and a maximum $100,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for June 27, 2014.

Enrique Biasotti March 13, 2014 at 01:47 PM
I'm just curious here and I'm only asking because the article above mentions "illegal cash kickbacks". Is there such a thing as a legal cash kickback for doctors? My doctor, for instance, gets visits from Pharmaceutical Companies every single day, and most recently his office has been acquired in some way by St. Barnabas Medical Center which means they have to change all their rules and follow St. Barnabas' policy? Patients have to fill in a whole bunch of new forms? Employees get raises? Is this the "legal kickback" system? What makes it illegal? That the payments are coming from low-income medical centers instead of giant pharmaceutical companies? As I understand it, most of the medical industry today is run on kickbacks. Kickbacks from the pharmaceuticals who are basically making doctors glorified drug dealers and pay them a sum of money at the end of the year. I mean the shame of this is that we actually need an "anti-kickback" statute to keep doctors in check? Is this for real? No wonder we are ranked 37th in the world for healthcare, just above Slovenia?!? Aren't we just about tired of being the country of kickbacks, hypocrisy and stupidity already? I'm still trying to get over the fact that your healthcare in this country is directly related to the income you generate? Am I the only person who sees a flaw in that system? So a person cannot get healthcare one day because he/she doesn't have the right amount of money, but if the same person were to hit the lottery - you can bet your butt that the doctor would treat him/her the very next day. This is outrageous! That's all I have from my soapbox. Carry on...


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