By: Christopher Parrella, Esq., CPC, CHC, CPCO
Parrella Health Law, Boston, Ma.
A Health Care Provider Defense and Compliance Firm
On December 16, 2024, Dr. Rahim Shafa, a Lexington, Massachusetts-based psychiatrist, was sentenced to three years in prison following his conviction for international money laundering and illegally importing unapproved, misbranded drugs. His case underscores the serious legal and ethical risks healthcare providers face when circumventing regulatory frameworks in pursuit of profit or unconventional treatments.
The Scheme: Importing Unapproved Drugs
Dr. Shafa owned and operated Novel Psychopharmacology (Novel), a psychiatric practice specializing in addiction treatment. Over a decade, he illegally imported naltrexone and disulfiram pellet implants from Hong Kong. While these drugs are FDA-approved in certain oral and injectable forms, the implantable pellet versions are not.
To conceal the true nature of these shipments, Shafa falsified customs declarations, labeling the packages as containing “plastic beads in plastic tubes.” He then implanted these unapproved drugs into patients, exposing them to unknown medical risks. Several patients testified about infections and severe complications stemming from the procedure, demonstrating how regulatory violations can directly harm patients.
Legal Consequences
After a 14-day jury trial in February 2024, Dr. Shafa was found guilty of:
- International Money Laundering
- Illegally Importing Merchandise Contrary to U.S. Law
- Receiving and Delivering Misbranded Drugs
He was sentenced to:
- Three Years in Prison
- Three Years of Supervised Release
- $115,765 in Restitution
- $150,000 in Fines
What Healthcare Providers Must Learn from This Case
- Compliance is Non-Negotiable: Medical practitioners must adhere to FDA guidelines and ensure that all drugs used in patient care are legally approved for their intended purposes.
- Transparency in Operations: Falsifying shipping and customs documents can result in severe federal charges, including money laundering.
- Patient Safety Comes First: Experimenting with unapproved treatments can lead to serious health risks, medical malpractice lawsuits, and reputational damage.
- Legal and Ethical Oversight: Regular audits and compliance reviews can help medical practices identify potential legal risks before they become criminal liabilities.
Call to Action
Parrella Health Law is dedicated to helping healthcare providers navigate complex legal, compliance, and regulatory challenges. If you have questions about FDA compliance, drug importation laws, or healthcare fraud defense representation, contact Parrella Health Law at 857.328.0382 or via email to Chris 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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