Psychiatrist gets prison for $19M Medicare, insurance fraud scheme

A psychiatrist in Wellesley, Mass., was sentenced to prison for charges related to a scheme that defrauded Medicare and private insurers of more than $19 million.

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Between January 2015 and December 2018, Gustavo Kinrys, MD, 53, who owned and operated Advanced TMS Associates in Natick, Mass., submitted false claims and received reimbursement for $19 million worth of medical services he did not provide, according to a June 7 news release from the Justice Department. Using the proceeds from his fraudulent claims, Dr. Kinrys bought a $1.8 million home in Wellesley, Mass., purchased more than $600,000 in jewelry and purchased a $2.1 million vacation home in Nantucket, Mass.  

Dr. Kinrys also made false statements to patients, insurers and billing companies and created or made an employee create fake patient records claiming he provided treatments that were never rendered and saw improvements in their conditions, according to the release. 

Dr. Kinrys was convicted of seven counts of wire fraud, six counts of false statements relating to healthcare matters, and one count of obstructing a criminal healthcare investigation. He was sentenced to 99 months in prison followed by two years of supervised release, and also ordered to pay restitution and forfeiture in an amount to be determined at a later hearing, the release said. 

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