Saratoga Doctor Pleads Guilty To Health Care Fraud

SARATOGA, CA -- South Bay doctor Venkat Aachi pleaded guilty to health care fraud along with unethically distributing hydrocodone without a legitimate medical need, the U.S. Department of Justice reported.

According to the plea agreement, Aachi, 52, of Saratoga, was a licensed physician who operated a pain clinic in San Jose and maintained a DEA registration number authorizing him to prescribe controlled substances.

Aachi admitted that from Sept. 18, 2017 through July 2, 2018 he wrote hydrocodone-acetaminophen prescriptions that were outside the scope of his professional practice. The plea agreement describes transactions in which Aachi improperly distributed hydrocodone. For example, he wrote a prescription in November 2017 that enabled a patient to receive 90 hydrocodone-acetaminophen pills without receiving a physical examination or discussion about treatment. Aachi acknowledged that he knew the prescriptions were not for a legitimate medical purpose and that he did not write the prescriptions in the usual course of his professional practice.

Further, Aachi admitted that on July 2, 2018, he falsely submitted to an insurance company a false and fraudulent claim for payment of healthcare benefits, items and services. Aachi admitted he acted with the intent to defraud the insurance company.

On Oct. 9, 2018, a federal grand jury indicted Aachi, charging him with six counts of distributing drugs outside the scope of professional practice and one count of health care fraud.

Aachi remains free on bail pending sentencing, with his hearing scheduled for July 1, 2019. He faces a maximum sentence of 20 years in prison and a fine of $1 million for the count of illegal distribution of hydrocodone; and 10 years in prison and a $250,000 fine for the health care fraud count. Additional fines, restitution, and additional periods of supervised release also could be ordered at sentencing.