Lady Justice
HOUSTON, August 11, 2025 — A Houston-based anesthesiologist has consented to pay over $2 million to settle claims that he fraudulently billed federal health care programs for intricate surgical procedures that were never actually conducted, as announced by federal prosecutors on Monday.
Dr. Ajay Aggarwal, 63, who runs The Pain Relief & Wellness Center with locations in Bellaire, Lake Jackson, and Van Vleck, will pay $2,053,515 to resolve allegations that he submitted false invoices to Medicare and the Department of Labor’s Workers’ Compensation Programs.
According to the U.S. Attorney’s Office for the Southern District of Texas, from November 2021 to March 2023, Aggarwal billed federal programs for the surgical implantation of neurostimulator electrodes, a procedure that usually requires a hospital operating room and is reimbursed at a high rate. However, authorities claim that no such surgeries ever occurred.
Instead, patients reportedly received electro-acupuncture treatments, which involve inserting small wires just millimeters into the skin behind the ear—significantly less invasive than the spinal surgeries for which Aggarwal billed.
“All device placements occurred in a clinical setting, not a hospital or surgical center, and involved no incisions,” the U.S. Attorney’s Office said. The devices were simply taped behind the ear with adhesive, rather than surgically implanted, as claimed in billing records.
Officials Condemn Scheme as “Bilking the American Taxpayer”
“A doctor who uses simple medical devices on his patients, yet bills Medicare for a sophisticated spinal surgery, is bilking the American taxpayer, plain and simple,” said U.S. Attorney Nicholas J. Ganjei. “We are committed to holding accountable those who take advantage of federal healthcare programs.”
Jonathan Ulrich, the Special Agent in Charge of the USPS-OIG, highlighted that civil penalties act as a deterrent: “We will persist in vigorously pursuing these investigations and spare no effort to safeguard the Postal Service from fraud, waste, and abuse.”
“This settlement underscores our agency’s steadfast commitment to enforcing the False Claims Act,” added Jason E. Meadows, Special Agent in Charge at HHS-OIG.
