State Medical Board Permanently Revokes License of Monmouth County Physician Convicted in $1.9 Million Insurance Fraud Scheme
Doctor Also Facing Unrelated Allegations of Criminal Sexual Contact Against Patient
TRENTON – Attorney General Matthew J. Platkin and the Division of Consumer Affairs today announced that the State Board of Medical Examiners (“Board”) permanently revoked the medical license of a Monmouth County physician convicted in a $1.9 million health care fraud scheme, who is also facing unrelated allegations of engaging in criminal sexual contact against a patient. Fazal Panezai, a cardiologist who owned and operated Matawan-Aberdeen Heart & Medical Center in Matawan, is facing up to 10 years in federal prison after admitting to carrying out a years-long scheme to defraud insurance providers through the submission of fraudulent claims for service. 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 (“OIFP”) with fourth-degree criminal sexual contact against a female patient. “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,”
said Attorney General Platkin. “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.” On April 11, 2024, Panezai pleaded guilty in federal court to an Information charging him with knowingly and intentionally executing a scheme to defraud health care benefit programs. Specifically, Panezai submitted numerous false claims to health insurance benefit programs and collected more than $1.9 million in fraudulent insurance reimbursements. Panezai submitted the false claims for office visits that either never occurred or were falsely reported in terms of duration. 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 is also under indictment on a State charge of fourth-degree criminal sexual contact stemming from an alleged incident with a patient in September 2018. That matter is pending with OIFP. Panezai, who represented to the Board that he stopped practicing medicine in New Jersey last January, agreed to resolve the Board’s 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 filed by the Board on October 25, 2024, 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. Panezai 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. In compliance with the Board’s regulations for office closure, by November 4, 2024, Panezai must provide the Board with written notification as to where his patient records are secured and how patients may obtain them. The State was represented in this matter by Deputy Attorney General Karen Webber, under the supervision of Section Chief Doreen A. Hafner and Assistant Section Chief David M. Puteska, of the Professional Boards Prosecution Section, within the Affirmative Civil Enforcement Practice Group of the Division of Law. 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.
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The mission of the Division of Consumer Affairs, within the Department of Law and Public Safety, is to protect the public from fraud, deceit, misrepresentation, and professional misconduct in the sale of goods and services in New Jersey through education, advocacy, regulation, and enforcement. The Division pursues its mission through its 51 professional and occupational boards that oversee 720,000 licensees in the state, its Regulated Business section that oversees 60,000 NJ registered businesses, as well as through its Office of Consumer Protection, Bureau of Securities, Charities Registration section, Office of Weights and Measures, and Legalized Games of Chance section.
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