A $40 Million “Black and White” Medicare Fraud Ends in Massive Forfeiture

shaking hands in office after discussing contract and business papers

By: Christopher Parrella, Esq., CPC, CHC, CPCO
Parrella Health Law, Boston, MA.
A Health Care Provider Defense and Compliance Firm

Some fraud cases live in the gray. This one didn’t.

Trivikram Reddy, a licensed nurse practitioner from Waxahachie, Texas, orchestrated a staggering scheme of outright deception—fabricating bills, using doctors’ names without their knowledge, laundering the stolen money overseas, and then lying to federal agents when the walls started closing in. It was premeditated. It was expansive. And now, it’s over.

Already serving a 20-year federal sentence for conspiracy to commit wire fraud, Reddy has just been ordered to forfeit more than $40 million hidden across nearly 200 bank accounts in India. This was not a mistake. This was calculated theft from the American healthcare system.

The mechanics were shockingly brazen: Reddy and his co-conspirators billed Medicare and five major insurers—Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna—for services never rendered. They hijacked six physicians’ provider numbers, pretending these doctors treated patients who never even walked through the clinic door.

When the feds started digging, Reddy doubled down. He fabricated entire medical records—chart notes, billing histories, all made up. A digital paper trail of lies. But forensic analysts followed the money, tracked it overseas, and locked it down.

On March 3, 2025, U.S. District Judge Ada Brown signed a final order: $41.2 million forfeited and returned from India to the U.S. government. That money will go where it should have gone in the first place—to fund actual care for real patients in need.

The scale of Reddy’s crimes is staggering:

  • $50+ million in restitution ordered.
  • 20 years in federal prison.
  • And now, tens of millions clawed back from international accounts.

If you suspect fraud in your organization or want to tighten your compliance program before it’s too late or you or your organization has been accused of fraud, contact Parrella Health Law at 857.328.0382 or reach out to Chris directly at cparrella@parrellahealthlaw.com.

Christopher A. Parrella, Esq., CPC, CHC, CPCO, is a leading healthcare defense and compliance attorney at Parrella Health Law in Boston. With extensive experience in healthcare law, he provides robust legal support in areas including regulatory compliance, audits, healthcare fraud defense, and reimbursement disputes. Christopher emphasizes client-centered advocacy, offering one-on-one consultations for personalized guidance. His proactive approach helps clients navigate complex healthcare regulations, ensuring compliant operations and defending against government investigations, audits, and overpayment demands.

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