New Jersey cardiologist loses license after pleading guilty to $1.9 million in insurance fraud

A Monmouth County cardiologist has agreed to permanently revoke his medical license after pleading guilty to a $1.9 million insurance fraud scheme that spanned years, the Attorney General’s Office announced Friday.

On April 11, Fazal Panezai pleaded guilty to a years-long fraud scheme and faces up to 10 years in federal prison plus restitution.

Panezai, who owned the Matawan-Aberdeen Heart & Medical Center in Matawan, was accused of fraudulently submitting more than $1.9 million in insurance claims for office visits that never happened or falsely reported the duration, authorities said .

“This type of behavior has no place in the medical profession in New Jersey,” said Carey Face, director of the Division of Consumer Affairs. “The action announced today ensures that this doctor will never practice medicine in our state again.”

Panezai told the state medical board that he stopped practicing medicine in New Jersey in January and agreed to step down to complete the board’s investigation into his criminal conduct, authorities said.

His retirement is considered an indefinite revocation of his medical license, authorities said.

Under the terms of the consent order announced Friday, Panezai must immediately cease contact with all patients in New Jersey and must not provide medical care in the state, including prescribing or dispensing any medications, authorities said.

He must also relinquish any current or future financial interest in the practice of medicine in New Jersey, but he is allowed to collect any bills that were unpaid before the end of business on January 31, 2024.

The announcement of the sentence is scheduled for November 12.

Panezai also faces charges of criminal sexual contact with a female patient brought by the New Jersey Insurance Fraud Office, officials said.

He was indicted by a state grand jury on Aug. 31, 2023, for allegedly having sexual contact with a female patient on Sept. 4, 2018, officials said.

The case has not yet been resolved, the next court hearing is scheduled for November 15, according to the consent decree.

An attorney for Panezai did not immediately return a request for comment Friday.