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Virginia Doctor Pleads Guilty to $1.8 Million Health Care Fraud Scheme

A Virginia doctor pleaded guilty today to his role in a $1.8 million health care fraud scheme to prescribe medically unnecessary compounded pain and scar creams and other expensive medications.

“Through his deceit and greed, Rosen exploited the trust placed in him as a medical professional to engage in an extensive scheme that defrauded health insurance programs out of $1.8 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Instead of prescribing medications in an honest and lawful manner to help those in need, the defendant sold out his medical license and training, and will now become a convicted felon.”

According to court documents, Leonard Rosen, 72, of Fairfax Station, was an obstetrician-gynecologist (OB-GYN) who practiced in Northern Virginia since 1980. Rosen was also the owner of an OB-GYN medical practice. In 2014, Rosen met Mohamed Abdalla, 48, of Allendale, New Jersey, who was a licensed pharmacist and owned and operated several pharmacies.

Shortly thereafter, Rosen entered into an agreement with Abdalla to prescribe expensive compounded pain and scar creams, which Rosen then ensured were sent to Abdalla’s pharmacies.

In return, Abdalla agreed to pay Rosen a percentage of the profits. Prior to this scheme, Rosen had not prescribed expensive compounded medications.

However, during the scheme, Rosen prescribed countless medically unnecessary compounded medications. In total, Rosen’s illegal actions resulted in $1,880,575.70 in losses to private health care benefit programs.

“Leonard Rosen exploited health care programs and his patients for personal gain by participating in a scheme to prescribe medically unnecessary prescriptions in return for money, and those criminal actions have consequences,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s plea is an example of the dedicated work of the FBI and our partners to root out fraud, ensure the safety of our communities, and hold criminals accountable for their actions.”

For his role in this and other schemes, Abdalla was sentenced on March 19 to four years in prison. Rosen is scheduled to be sentenced on December 10. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties.

A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.

Assistant U.S. Attorneys Monika Moore and Carina A. Cuellar are prosecuting the case.

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