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CA Doc Faked Implants, Billed Medicare for Millions, Feds Say

August 16, 2022

Azizulah "Aziz" Kamali, MD, sent bogus claims to Medicare for surgically implanted neurostimulator devices, even though he didn’t perform the surgeries or implant neurostimulators.

A California physician will pay nearly $2 million to resolve civil allegations that he billed millions of dollars in false claims to Medicare for faked surgical implants, the U.S. Department of Justice says.

Federal prosecutors say that Stockton-based Azizulah "Aziz" Kamali, Aziz Kamali, MD, admitted that he sent bogus claims to Medicare for surgically implanted neurostimulator devices, even though he didn't perform the surgeries or implant neurostimulators.

Instead, Kamali admitted that he taped a disposable electroacupuncture device called "Stivax" onto patients’ ears. Stivax devices do not require surgical implants, nor are they covered by Medicare, and billing the government for them is a violation of the False Claims Act.

"This provider egregiously exploited the trust of his patients for illegitimate financial gain," Steven J. Ryan, special agent in charge with the Department of Health and Human Services' Office of the Inspector General, says in a media release.

Kamali also admitted that he paid a marketing company a percentage of his fraudulent Medicare reimbursements to arrange for and recommend that patients order Stivax, a violation of the Anti‑Kickback Statute and the False Claims Act.

In addition to the civil settlement, Kamali entered an integrity agreement with HHS-OIG that mandates specific compliance measures, including training on healthcare fraud laws and hiring independent auditors.

“This provider egregiously exploited the trust of his patients for illegitimate financial gain.”


KEY TAKEAWAYS

Kamali taped a disposable electroacupuncture device called "Stivax" onto patients’ ears.

Stivax devices do not require surgical implants, nor are they covered by Medicare.

Kamali also admitted that he paid a marketing company to recommend that patients order Stivax.


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