United States Drug Enforcement Administration

NEW HAVEN, Conn. - Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Connecticut Attorney General William Tong announced that NAIMETULLA AHMED SYED, M.D. has entered into a civil settlement agreement with the federal and state governments and agreed to pay $455,439.26 to resolve allegations that he violated the federal and state False Claims Acts and the civil provisions of the Controlled Substances Act (“CSA”) relating to his issuance of medically unnecessary controlled substances prescriptions.

Syed is licensed as a doctor of psychiatry and was the sole practitioner at his medical offices in Danbury and New Haven.  It is alleged that, between June 2016 and June 2021, Syed issued medically unnecessary prescriptions – including prescriptions for controlled substances – for which Syed caused false claims to be submitted by Cornerstone Pharmacy, Inc. (doing business as “Whalley Drug”) in New Haven to Medicare and Medicaid for those medically unnecessary prescriptions.  Syed also billed Medicare and Medicaid for medically unnecessary office visits related to those medically unnecessary prescriptions.

In addition, it is alleged that Syed issued prescriptions for controlled substances without a legitimate medical purpose and not in the usual course of professional practice, in violation of Syed’s obligations under the CSA.  Syed issued prescriptions for excessive and unsafe amounts of benzodiazepines; for controlled substances to individuals displaying red flags of abuse, addiction, or diversion, including to individuals who received dangerous combinations of controlled substances (including the high-risk “holy trinity” drug combination of at least one opioid, benzodiazepine, and a muscle relaxant); and to an individual for buprenorphine, a synthetic opioid that can be used to treat opioid use disorders, at the same time that this individual was receiving oxycodone and hydrocodone from other providers.  He also failed to maintain adequate treatment records, and maintained patient files devoid of any information documenting an examination or reasons for the prescriptions, or establishing a doctor-patient relationship.

On June 16, 2021, Syed voluntarily surrendered his DEA licenses.

In addition to making payment of $455,439.26 under the civil settlement agreement, Syed agreed to a 20-year exclusion from Medicare, Medicaid, and all other federal health care programs, as well as a 20-year suspension from the Connecticut Medical Assistance Program.  Syed also entered into an agreement with the Connecticut Department of Public Health in which he agreed to cease the practice of medicine as of November 25, 2024, and to not renew his physician license, which expires this month.

In 2016, Syed paid $422,641.70 to resolve federal and state allegations that he submitted false claims for psychotherapy services to Medicare and Medicaid.

In April 2024, Cornerstone Pharmacy (d/b/a Whalley Drug) and its owner, Yong Kwon, paid $120,000 to resolve allegations that they violated the CSA by filling invalid prescriptions.  Kwon voluntarily surrendered the DEA license for Whalley Drug, which no longer operates as a retail pharmacy, on June 22, 2021, after the DEA’s execution of an Administrative Inspection Warrant.

This investigation was conducted by the Office of Inspector General for the Department of Health and Human Services, DEA’s Office of Diversion Control, and the DEA New Haven’s Tactical Diversion Squad, with the assistance of the Connecticut Department of Consumer Protection, Drug Control Division.  This case was prosecuted by Assistant U.S. Attorneys Sarah Gruber and David Nelson, and by Deputy Associate Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.