New Delhi: Indian-origin chief financial officer Aditya Humad has been sentenced to four months in prison by a US federal court for his involvement in a health care fraud scheme involving sham consulting fees paid to surgeons. Following his prison term, the 41-year-old resident of Cambridge, Massachusetts, will undergo one year of supervised release and pay a fine of $9,500 after pleading guilty to one count of conspiracy to violate the federal Anti-Kickback Statute.
According to statements from the US Attorney’s Office for the District of Massachusetts, Humad conspired with SpineFrontier’s founder and CEO, Kingsley R. Chin, to direct over $540,000 in bribe payments disguised as consulting fees to surgeons between 2013 and 2019. In exchange for using the company’s spinal implant devices during complex surgical procedures, surgeons received hourly rates ranging from $250 to $1,000 under contracts purportedly meant for technical feedback. Federal prosecutors noted that the surgeons performed little to no actual consulting work, while the scheme generated millions of dollars in revenue for the company through federally funded programs, including Medicare, Medicaid, and the Veterans Health Administration.
United States Attorney Leah B. Foley noted that federal authorities have recovered over $4 million through related criminal and civil proceedings involving the company, its executives, and participating physicians. Special Agent in Charge Roberto Coviello of the US Department of Health and Human Services Office of Inspector General emphasized that the enforcement action demonstrates the government’s commitment to upholding patient safety and safeguarding public health care programs from corporate corruption.