ROCHESTER — A former psychiatrist at the Canandaigua VA Medical Center is heading to prison for bogus billing practices and tax fraud.
Dr. Xingjia Cui, 56, of Pittsford, was sentenced Monday in federal court to 12 months and 1 day in prison after he was convicted of health care and tax fraud. The sentence, which includes restitution of nearly $600,000, was announced by the office of James Kennedy Jr., U.S. Attorney for the Western District of New York.
Assistant U.S. Attorney John Field, who handled the case, said Cui was employed full-time by the Canandaigua VA. He also had a private psychiatric practice in Canandaigua.
An investigation involving federal, state, and local law enforcement agencies revealed Cui billed health insurance companies for psychotherapy services he did not provide to his patients. Specifically, from January 2013 to October 2015, Cui willfully defrauded health insurance benefit programs of approximately $79,275 by billing for services he did not provide.
The investigation also showed Cui failed to report on his federal income tax returns hundreds of thousands of dollars of payments he received directly from his patients. For tax years 2010 through 2014, Cui failed to report about $381,447 of income he earned, resulting in a tax loss to the U.S. Treasury of about $132,704.
The investigation included the Federal Bureau of Investigation, Internal Revenue Service, state Department of Financial Services, state Medicaid Fraud Control Unit, and the Ontario County Sheriff’s Office.