Sleep Clinic Owner Pleads Guilty to Multimillion-Dollar Healthcare Fraud

## Sleep Clinic Owner Admits to Healthcare Fraud The owner and operator of an Oregon-based sleep diagnostic testing company has pleaded guilty to conspiracy to commit healthcare fraud after overcharging federal agencies and private insurers for sleep studies. Mehrdad Gerami, the owner and operator of Coastal Diagnostic Testing Group, has admitted to the charges, which include overbilling for expensive in-office sleep studies when cheaper at-home tests were conducted, and falsely billing for studies that never occurred. ## Estimated Loss Exceeds $2.1 Million According to court documents, Gerami and his employees overcharged the US Department of Health and Human Services, the Veterans Health Administration, and numerous private insurance companies for intensive, in-office sleep studies. The estimated loss from the fraudulent billing is $2,124,363.41. This significant financial loss is a result of Gerami's instructions to staff to bill fraudulently, despite the studies never occurring on those dates. ## Investigation and Prosecution The case was investigated by the Health and Human Services Office of Inspector General and the Department of Veterans Affairs Office of Inspector General. The case is being prosecuted by Assistant US Attorneys Joseph Huynh and Julia Jarrett. As part of the plea agreement, Gerami has agreed to pay restitution in full to his victims. He will be sentenced on January 26, 2027, before a US district court judge. ## Potential Consequences Gerami faces a maximum sentence of 10 years' imprisonment, a fine of $250,000, and three years of supervised release. The potential consequences of his actions serve as a reminder of the importance of honesty and integrity in the healthcare industry. The case highlights the need for vigilance in preventing and detecting healthcare fraud, which can have significant financial and reputational consequences for individuals and organizations. ## Restitution and Accountability As part of his plea agreement, Gerami has agreed to pay restitution in full to his victims. This commitment to making amends for his actions demonstrates a level of accountability and responsibility. However, the full extent of the consequences of his actions will be determined by the court at his sentencing hearing.