A Natick, Massachusetts psychiatrist has been found guilty by a federal jury for orchestrating a healthcare fraud scheme that bilked Medicare and private insurance companies out of over $11 million. Dr. Gustavo Kinrys, 52, of Wellesley, was convicted on multiple counts, including wire fraud and making false statements related to healthcare matters, alongside obstruction of justice for attempting to cover up his illicit activities. The verdict, delivered yesterday in U.S. District Court, comes after Kinrys was initially charged in December 2020. Judge Denise J. Casper has scheduled his sentencing for January 31, 2023.
Acting United States Attorney Joshua S. Levy condemned Kinrys’ actions, stating, “Dr. Kinrys shamelessly billed for over $11 million in treatment… treatments he never provided. He exploited our healthcare system and showed callous disregard for patient well-being. This conviction should send a stern message: healthcare fraud will not go unpunished.”
Roberto Coviello, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General, emphasized the breach of trust, “Through his scheme to defraud the Medicare program, the defendant stole taxpayer funds and violated the public’s trust in his position as a physician… We will hold accountable those who exploit our federal health care system for personal gain.”
Jodi Cohen, Special Agent in Charge of the FBI Boston Division, highlighted the broader impact of healthcare fraud, “Healthcare fraud is not a victimless crime. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes… The FBI and our partners will not hesitate to pursue those trying to steal from our country’s vital health care system.”
Anthony M. DiPaolo, Executive Director of the Massachusetts Insurance Fraud Bureau, underscored the collaborative effort to combat such crimes, “This matter illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens… Our continuing collaboration with our partners is critical to successfully fight insurance fraud.”
Dr. Kinrys, through his Natick-based practice, Advanced TMS Associates, offered services like transcranial magnetic stimulation (TMS) therapy and psychotherapy. TMS therapy, a noninvasive treatment for depression, involves using magnetic fields to stimulate the brain. However, between January 2015 and December 2018, Kinrys devised elaborate fraudulent billing schemes.
The schemes involved billing for services never rendered. A staggering $10.6 million was fraudulently billed for TMS sessions that were not provided, including over 8,000 sessions claimed for 74 patients who never received the therapy. Additionally, Kinrys billed hundreds of thousands of dollars for psychotherapy sessions he falsely claimed to have conducted. This included over 900 face-to-face sessions supposedly delivered while he was vacationing in locations such as the Bahamas, Dominican Republic, and the Czech Republic. In an audacious move, on 382 occasions, Kinrys billed for more than 24 hours of psychotherapy in a single day, even claiming to have provided 70 hour-long sessions on one day in July 2017 while abroad on vacation.
To perpetuate his fraud, Kinrys made false statements to patients, his billing company, and insurers. When inquiries arose from Medicare, private insurers, and the Department of Health and Human Services (HHS), Kinrys attempted to obstruct the investigation. He created false documentation to give the illusion that treatments had been provided. For instance, in response to a subpoena from the HHS’s Office of Inspector General in July 2018, Kinrys and his staff fabricated records for 10 patients, falsely indicating they had received numerous treatments and were improving.
The severity of the charges reflects the gravity of healthcare fraud. Wire fraud carries a potential sentence of up to 20 years in prison and substantial fines. False statements related to healthcare and obstruction of a criminal healthcare investigation each carry penalties of up to five years in prison and significant fines. The final sentence will be determined by a federal district court judge based on U.S. Sentencing Guidelines.
Acting U.S. Attorney Levy, HHS-OIG SAC Coviello, FBI Boston SAC Cohen, and MA IFB Director DiPaolo jointly announced the conviction. The prosecution was handled by Assistant U.S. Attorneys Patrick M. Callahan and Christopher R. Looney of the Health Care Fraud Unit.
