By: Richard L. Smith
A Monmouth County physician has permanently lost his medical license after pleading guilty to a $1.9 million health care fraud scheme and facing separate allegations of criminal sexual contact with a patient, according to the New Jersey Attorney General’s Office.
The State Board of Medical Examiners announced the permanent revocation of cardiologist Fazal Panezai’s license, a move aimed at protecting public trust and patient safety.
Panezai, who owned Matawan-Aberdeen Heart & Medical Center, admitted in federal court to orchestrating a years-long scheme to defraud insurance companies by submitting false claims.
According to the Attorney General’s Office, Panezai collected more than $1.9 million in reimbursements for office visits that were either exaggerated or never occurred.
Following his guilty plea, Panezai faces up to 10 years in federal prison and a fine of up to $250,000 or twice the amount of his illicit gains, whichever is greater.
In addition to the federal fraud case, Panezai is facing a separate state charge of fourth-degree criminal sexual contact, stemming from an alleged incident with a patient in 2018.
The New Jersey Office of the Insurance Fraud Prosecutor (OIFP) is handling this matter, which remains pending, according to the Attorney General’s Office.
Attorney General Matthew J. Platkin emphasized the importance of holding medical professionals accountable to maintain public trust.
“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,” Platkin said.
Panezai agreed to the permanent revocation of his medical license through a Consent Order filed by the Board on October 25, 2024. The terms require Panezai to cease all patient interactions and medical practice in New Jersey.
He must also divest from any future financial interest in medical practice within the state, although he is allowed to collect receivables for services provided before January 31, 2024.
“This action ensures this doctor will never again practice medicine in our state,” said Cari Fais, Director of the Division of Consumer Affairs.
Panezai represented to the Board that he had ceased practicing medicine in New Jersey as of January.