Former Brookline Doctor Sentenced to More Than Four Years in Prison for Health Care Fraud and Tax Fraud

BOSTON - A former Brookline, Mass. physician was sentenced on June 5, 2026 in federal court in Boston for health care fraud, money laundering, tax evasion and conspiring to defraud the Internal Revenue Service (IRS).

Dr. Pankaj Merchia, 52, of Brookline, Mass. and Boca Raton, Fla., was sentenced by U.S. Senior District Court Judge Nathaniel M. Gorton to 58 months in prison, to be followed by three years of supervised release. Merchia was also ordered to pay $1,847,931 in restitution. In January 2026, Merchia was convicted of one count of health care fraud, three counts of money laundering, two counts of tax evasion and one count of conspiracy to defraud the IRS. Merchia was indicted for money laundering and health care fraud in December 2022 and later charged with tax offenses in a superseding indictment along with alleged co-conspirator Dr. Shona Pendse in February 2023.

Merchia perpetrated two distinct health care fraud schemes. First, Merchia billed former patients' insurance companies for monthly rentals of Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPap) machines from 2017 to 2019, despite not having treated the patients since at least 2011. In some cases, the patients had returned the devices to him. Merchia used the proceeds of this fraud to purchase an expensive home in Brookline.

Additionally, Merchia defrauded another insurance company out of over $390,000 by submitting claims for a CPAP machine provided to his brother. After he was told that the insurance carrier would not pay for treatment rendered by a family member, Merchia created a new medical business and submitted new claims so that the company would pay. Merchia used the proceeds of this fraud to fund a wire transfer of $250,000 and to purchase at least $140,000 in securities.

Finally, from 2009 to 2019 Merchia did not report, or pay taxes on, over $6.5 million in income he earned from his medical businesses by falsely claiming that those businesses were owned by his co-conspirator. To defraud the IRS, Merchia fabricated a sham transaction by which he claimed to have sold his medical businesses to his co-conspirator in 2008. To ensure that his co-conspirator did not owe taxes, they claimed large amortization deductions, spread across many years, for the fabricated sale.

United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement. Assistant U.S. Attorney Neil J. Gallagher, Jr. of the Health Care Fraud Unit and Trial Attorney Ezra Spiro of the Department of Justice Criminal Division's Tax Section are prosecuting the case.

On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. The Team is led by two senior federal prosecutors serving as Fraud Coordinators, whose mission it is to aggressively investigate and prosecute misuse of taxpayer-funded benefits in Massachusetts.

Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.