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

In a case that sends a thunderous warning to healthcare fraudsters banking on foreign accounts for protection, the U.S. Department of Justice has successfully secured the return of more than $40 million laundered into overseas bank accounts by a convicted nurse practitioner.

Trivikram Reddy, a Texas-based nurse practitioner already serving a 20-year sentence for a massive Medicare and commercial payer fraud scheme, has now been ordered to forfeit $41.2 million traced to nearly 200 accounts in India. After his 2021 conviction for conspiracy to commit wire fraud and a restitution order exceeding $50 million, Reddy and his family members finally stipulated to the forfeiture of the fraud proceeds.

This case underscores two critical realities for compliance officers, providers, and fraud investigators:

1. There’s No Safe Haven for Fraud Proceeds

   The DOJ’s aggressive civil forfeiture action proves that hiding funds in overseas banks is no longer a viable shield. Federal prosecutors used forensic financial analysis to trace the money abroad, then secured seizure warrants—even across international borders—to bring the funds back into U.S. government custody.

2. Health Care Fraud is a High-Stakes Game with Global Reach

   Reddy’s scheme relied on creating false claims using the credentials of six physicians who never treated patients at his clinics. When investigators came knocking, Reddy’s team doubled down—fabricating medical records to cover their tracks. That effort failed. The sentence? Two decades behind bars, tens of millions in restitution, and now, the loss of tens of millions more through forfeiture.

Call to Action

If you’re a provider with concerns about billing practices, compliance with the False Claims Act, or international payment structures, contact Parrella Health Law at 857-328-0382 or Chris directly at cparrella@parrellahealthlaw.com. We’re here to protect what you’ve built—before the feds come knocking.