Naimetulla Ahmed Syed, MD, a psychiatrist practicing in Danbury and New Haven, Connecticut, has agreed to a civil settlement of $455,439.26 to resolve allegations of violating the False Claims Act and the civil provisions of the Controlled Substances Act. The settlement follows an investigation conducted by the U.S. Department of Health and Human Services, Office of the Inspector General, the Drug Enforcement Administration New England Division, and the Connecticut Attorney General's Office. The findings were published in a press release by the U.S. Department of Justice.

The investigators examined Syed's prescribing practices from June 2016 to June 2021. Investigators alleged that Syed issued medically unnecessary prescriptions, including excessive quantities of benzodiazepines and high-risk controlled substances, without a legitimate medical purpose. Notably, Syed prescribed medications to patients exhibiting signs of substance misuse or diversion, including patients receiving concurrent prescriptions for opioids, benzodiazepines, and muscle relaxants—a combination commonly referred to as the "holy trinity" due to its association with increased overdose risk. One patient was prescribed buprenorphine, a synthetic opioid that can be used to treat opioid use disorders, while simultaneously obtaining oxycodone and hydrocodone from other providers. Additionally, Syed's patient files reportedly lacked documentation of medical examinations, justifications for prescriptions, or evidence of an established doctor-patient relationship.

Investigators alleged that Syed's prescribing practices caused Cornerstone Pharmacy, Inc. (doing business as Whalley Drug) to submit claims to Medicare and Medicaid for prescriptions and related office visits described as medically unnecessary. Following these findings, Syed voluntarily surrendered his Drug Enforcement Administration (DEA) licenses on June 16, 2021.

As part of the settlement, Syed has been excluded from participation in Medicare, Medicaid, and all other federal health care programs for 20 years. He also agreed to a 20-year suspension from the Connecticut Medical Assistance Program. Additionally, Syed entered an agreement with the Connecticut Department of Public Health to cease practicing medicine as of November 25, 2024, and not renew his physician license upon expiration.

This is Syed's second financial settlement with federal and state authorities. In 2016, he paid $422,641.70 to resolve allegations of submitting false claims for psychotherapy services to Medicare and Medicaid. More recently, in April 2024, Cornerstone Pharmacy and its owner, Yong Kwon, paid $120,000 to settle allegations of violating the Controlled Substances Act (CSA) by filling invalid prescriptions. Kwon subsequently surrendered the DEA license for Whalley Drug, which ceased retail pharmacy operations on June 22, 2021.

The investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the DEA's Office of Diversion Control, and the DEA New Haven Tactical Diversion Squad, with assistance from the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorneys Sarah Gruber and David Nelson, as well as Deputy Associate Attorney General Gregory O'Connell.

Reference:

U.S. Drug Enforcement Administration. New Haven psychiatrist to pay more than $450K to settle False Claims Act and Controlled Substances Act allegations.