MATAWAN – A cardiologist convicted of a $1.9 million health care fraud scheme had his medical license revoked, officials said, while he also faces a sexual assault charge.
Fazal Panezai, of Morganville, who owned and operated Matawan-Aberdeen Heart & Medical Center in Matawan, is facing up to 10 years in federal prison for submitting fake claims for service, according to Attorney General Matthew J. Platkin and the Division of Consumer Affairs. Panezai agreed to the permanent revocation of his license to resolve allegations he engaged in dishonesty and fraud, professional misconduct, and other violations of Board rules for medical professionals.
In a matter unrelated to his federal conviction, Panezai is charged by the New Jersey Office of the Insurance Fraud Prosecutor with fourth-degree criminal sexual contact against a female patient.
This stems from a September 2018 incident that is still under investigation.
“We hold physicians to professional standards befitting the trust the public and their patients place in them. When they fall short of those standards, as this doctor did, they must be held accountable,” Platkin said. “We will continue to promote public safety and protect the integrity of New Jersey’s medical profession by removing bad doctors from practice.”
“There is no place in New Jersey’s medical profession for conduct such as this,” said Cari Fais, Director of the Division of Consumer Affairs. “The action announced today ensures this doctor will never again practice medicine in our state.”
Panezai previously pleaded guilty in federal court to defrauding at least six insurance companies of more than $1.9 million. He had submitted claims for visits that either never happened or that were much shorter than he documented. He faces up to 10 years in federal prison and a maximum fine of either $250,000 or twice the gain or loss from his offense, whichever is greater.
Panezai told officials that he stopped practicing medicine in New Jersey last January, and agreed to resolve the inquiry into his criminal conduct by permanently retiring from practice in the state, with such retirement to be deemed a permanent revocation.
Under the terms of a Consent Order, Panezai must immediately cease and desist from all patient contact at any location in New Jersey and from rendering medical care in the state, including the issuance of any prescriptions for, or dispensation of, medications of any kind. He must divest himself from any current and future financial interest in, or benefit derived from, the practice of medicine in New Jersey and from charging, receiving, or sharing in any fee for professional services rendered by others. He is permitted to collect accounts receivable with respect to professional services that he rendered prior to the close of business on January 31, 2024.
Panezai must provide the Board with written notification as to where his patient records are secured and how patients may obtain them.
Patients who believe that they have been treated by a licensed health care professional in an inappropriate manner can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.
