A former physician from Brookline, Massachusetts has been convicted in federal court of multiple charges related to health care fraud, money laundering, and tax evasion. Dr. Pankaj Merchia, 52, who also resides in Boca Raton, Florida, was found guilty on January 27, 2026 after a ten-day jury trial in Boston. The charges include one count of health care fraud, three counts of money laundering, two counts of tax evasion, and one count of conspiracy to defraud the Internal Revenue Service (IRS). Sentencing is scheduled for April 28, 2026.
According to prosecutors, Merchia engaged in two separate schemes to commit health care fraud. In the first scheme, he billed insurance companies for monthly rentals of CPAP and BiPap machines between 2017 and 2019 for patients he had not treated since at least 2011. Some patients had even returned the devices prior to the billing. Authorities say that Merchia used proceeds from this activity to purchase an expensive home in Brookline.
In a second scheme, Merchia submitted claims totaling over $390,000 to another insurance company for a CPAP machine provided to his brother. After being informed that payments could not be made for treatment rendered by a family member, Merchia established a new medical business and resubmitted claims under that entity so payment would be approved. He allegedly used funds obtained through this method for a $250,000 wire transfer and purchased at least $140,000 worth of securities.
Additionally, from 2009 through 2019 Merchia failed to report or pay taxes on more than $6.5 million in income generated by his medical businesses. Prosecutors allege that he falsely claimed these businesses were owned by his co-conspirator and fabricated documents indicating he sold them in 2008. Large amortization deductions were then claimed over several years as part of this arrangement.
The convictions carry significant penalties: each count of money laundering and health care fraud allows for up to ten years in prison plus supervised release and fines; tax evasion and conspiracy charges allow for up to five years in prison with similar financial penalties. Sentences will be determined according to federal guidelines.
“United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement.” “Assistant U.S. Attorney Neil J. Gallagher, Jr. of the Health Care Fraud Unit and Trial Attorney Ezra Spiro of the Department of Justice Criminal Division’s Tax Section are prosecuting the case.”
Authorities note that “the details contained in the charging documents are allegations,” and that “the remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.”