A Queens physician was sentenced to seven years after a federal jury found he schemed to bilk Medicare of more than $24 million by ordering unneeded lab tests and orthotic braces in exchange for cash kickbacks, and a judge ordered $2.2 million in restitution.
The court found that the doctor accepted tens of thousands of dollars in illegal cash kickbacks to authorize medically unnecessary laboratory testing and orthotic brace prescriptions that were billed to Medicare by two New York labs and a durable medical equipment supplier. The scheme included expensive cancer genetic tests and lengthy office visit claims that the evidence showed were never provided. Prosecutors presented undercover video and witness testimony tying payments to signed prescriptions and test orders.
Much of the wrongdoing centered on COVID-19 testing events in 2020 at assisted living facilities, adult day care centers and a retirement community, where Medicare beneficiaries received tests and had additional orders placed for cancer genetic panels. The doctor, Alexander Baldonado, M.D., 69, of Queens, allegedly ordered hundreds of those cancer genetic tests even though he did not treat the patients. Several beneficiaries who testified at trial said they had never met or spoken with him and did not know who he was.
Investigators say Baldonado often did not examine patients or contact them afterward to review test results, and in some cases patients never received their results at all. Evidence at trial also showed that Medicare was billed for lengthy office visits that never occurred. Those deceptive billing practices pushed millions of dollars through the system and harmed program integrity.
Separately, prosecutors proved a kickback arrangement involving orthotic braces, in which the doctor accepted cash payments from the owner of a durable medical equipment supply company in return for signed prescriptions. Undercover footage played during the case reportedly captured Baldonado receiving a substantial sum in exchange for prescriptions for orthotic devices. That exchange formed a clear link between the cash payments and the medically unnecessary orders.
The fraudulent lab tests and brace prescriptions resulted in more than $24 million in claims billed to Medicare, with Medicare paying out more than $2.2 million on the basis of those false claims. As a result of the convictions and the sentencing, the court ordered Baldonado to repay $2.2 million as restitution. The financial toll reflects only the portion that was paid, while the billed amount underscores the scale of the scheme.
After a five-day jury trial in February 2025, Baldonado was convicted on multiple counts, including one count of conspiracy to commit health care fraud and six counts of health care fraud. He was also found guilty of one count of conspiracy to defraud the United States and to pay, offer, receive, and solicit health care kickbacks, one count of conspiracy to defraud the United States and to receive and solicit health care kickbacks, and one count of solicitation of health care kickbacks. The convictions covered both the laboratory testing and the durable medical equipment schemes.
Officials from the Justice Department and federal law enforcement announced the outcome and detailed the case at the sentencing. Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge James E. Dennehy of the FBI Newark Field Office made the announcement. Those agencies worked together to gather the evidence that led to the prosecution.
The case was investigated by HHS-OIG and the FBI and prosecuted by Acting Principal Assistant Chief Rebecca Yuan of the Criminal Division’s Fraud Section. Prosecutors emphasized that the investigation relied on undercover recordings, witness testimony from Medicare beneficiaries, and documentary billing records to trace the improper payments and false claims. The Fraud Section led the courtroom effort to hold the doctor accountable.
The Fraud Section also described the broader enforcement context, noting that its Health Care Fraud Strike Force Program has been active since March 2007 and now operates nine strike forces across 27 federal districts. Since the program began, it has charged more than 5,800 defendants who collectively are accused of billing federal health care programs and private insurers more than $30 billion. The Division and partner agencies say they will continue pursuing providers who exploit patients and federal programs for financial gain.
Officials noted that the Centers for Medicare and Medicaid Services, together with the HHS Office of Inspector General, are taking additional steps to identify and hold providers accountable for their involvement in health care fraud schemes. Those efforts aim to protect beneficiaries and preserve trust in federal health care programs by rooting out illegal referral and payment schemes that drive unnecessary care and waste taxpayer dollars.
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