Arizona physician Dr Irfan Fazil has been sentenced to seven and a half years in prison after admitting to a healthcare fraud scheme that generated more than $36.5 million from the state’s Medicaid program.
Fazil, 54, was also sentenced to seven years of probation following his release and ordered to surrender his assets.
The sentence was handed down on October 2 in Yuma County Superior Court, according to Arizona Attorney General Kris Mayes.
The case centred on claims submitted to the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid program, through several businesses associated with Fazil.
Claims for Medical Services That Were Not Performed
Prosecutors said Fazil used Bio Family Clinic Inc, Yuma Mobile X-Ray and Yuma Kidney and Dialysis to submit large numbers of claims for radiology and other medical services.
The businesses billed AHCCCS for X-rays, electrocardiograms, CT scans, ultrasounds and other treatments between July 1 and December 31. During that period, the businesses collected more than $36 million.
The attorney general’s office said the scale of the billing represented a dramatic increase from earlier figures.
About two and a half years earlier, the businesses had received approximately $4.7 million through claims, with payments later increasing by nearly 671 percent.
One Patient Account Listed More Than 1,700 X-Rays
Investigators examined the billing records of 27 patients with the highest volumes of claims and found what prosecutors described as particularly extreme examples.
One patient’s account had been billed for hundreds of radiology services, including more than 1,700 X-rays over several months.
The attorney general’s office described that number as physically impossible and said carrying out that many X-rays would have exposed the patient to dangerous levels of radiation.
Mayes said Fazil had billed for thousands of medical services that could not have been performed and accused him of treating AHCCCS as a source of personal funds.
Patient Questioned About Treatment She Never Received
Questions about the medical records also came from former patients.
Kara Carson, who said she had been treated by Fazil alongside her father for about 15 years, told AZFamily that she became suspicious when her insurance company contacted her.
She said the insurer asked whether she remained in a wheelchair and still had tubes in her throat.
Carson said she had never had a tube in her throat and was able to walk normally.
She also said she had been listed as having multiple medical conditions that she had not previously known about.
Prescription Conduct Also Included in Case
The case involved more than questionable medical billing.
According to the attorney general’s office, Fazil also wrote prescriptions for his wife, including clonazepam, while she was outside the United States.
He allegedly collected the medication himself from a pharmacy.
Fazil was arrested in June and taken to the Yuma County Detention Center. A judge initially set his bond at $50 million.
He later pleaded guilty to felony offenses including fraudulent schemes and artifices, illegal control of an enterprise, theft and illegal procurement of a dangerous drug.
Luxury Assets Ordered Forfeited
The court ordered Fazil to forfeit his assets as part of the sentence.
The property identified by the attorney general’s office included real estate, medical facilities, vehicles, several aircraft, jewellery, luxury handbags, US currency, cryptocurrency and gold bars.
The forfeiture followed prosecutors’ allegations that the proceeds from the medical businesses had supported an affluent lifestyle.
A Doctor With a High-Profile Public Image
Before the criminal case, Fazil had established a public profile as a kidney specialist and had twice been recognised as a top doctor.
His professional website listed numerous awards, including a 2023 Top Nephrologist recognition from Best Doctor Magazine.
For years, Fazil and his wife, Nadia Hanif, presented themselves publicly as a prominent medical couple in Yuma.
The Pakistani-born couple lived with their three children in a five-bedroom property in west Yuma.
They also operated a YouTube health programme, Dr Fazil’s Show, where Fazil discussed subjects ranging from probiotics to prostate health.
The couple additionally published a health magazine featuring medical information and charitable activities.
Three Businesses at the Centre of the Investigation
More than 100 doctors, nurses and other support workers were employed across Fazil’s three businesses, according to accounts cited in the case.
Former employees said the clinics appeared professional from the outside.
One former staff member alleged that Fazil and Hanif maintained tight control over billing and that the businesses did not have an office manager who could independently oversee the process.
Another former employee said staff members were left without pay and temporarily lost access to their 401(k) retirement savings following the collapse of the businesses.
International Financial Connections Examined
Evidence presented during a June bond hearing also focused on Fazil’s international connections.
Fazil was born, raised and educated in Pakistan before becoming a naturalised US citizen.
Prosecutors said he maintained connections to Pakistan and Dubai, where his wife owns an operating clinic.
Bank records allegedly showed approximately $1 million transferred from Fazil’s accounts to Dubai and Pakistan.
His wife, who helped operate Bio Family Clinic and the other Yuma medical businesses as well as the Dubai clinic, was not formally charged in the case.
Authorities Also Raised Drug-Related Allegations
Evidence presented in the case included allegations concerning Fazil’s associates and travel.
According to the Drug Enforcement Administration, his personal pilot and other associates had alleged connections to Mexican drug cartels.
Fazil was also reported to have crossed the US-Mexico border on foot during some of his travels and used a private fleet of small aircraft.
The allegations concerning his associates were separate from the charges to which Fazil pleaded guilty.
Sentencing Brings the Case to a Court-Imposed Penalty
Fazil’s June indictment contained a broad range of felony allegations, including fraud, theft, conspiracy and drug-related offences.
He subsequently admitted his guilt to the charges specified in his plea.
His October 2 sentence consists of seven and a half years in prison followed by seven years of probation, alongside the forfeiture of his identified assets.
Attorney General Mayes said her office would continue prosecuting fraud involving government-funded programmes and protecting taxpayer money.
