New Haven Dentist Pays $600K+ To Settle False Claims Allegations: Feds

NEW HAVEN, CT — Tuesday, a New Haven Based dentist and her three dental practice businesses entered into a civil settlement agreement with the federal and state governments and paid $608,296.39 to resolve allegations they violated the federal and state False Claims Acts, officials said.

Lakshmi Bethi DMD and her former businesses, New Haven Dental, New Haven Family Dental, and New Haven Family Dental Group, paid $608,296.39 to settle a federal and state False Claims Acts case. All were enrolled as dental providers in the Connecticut Medical Assistance Program, which includes the state’s Medicaid program, U.S. Attorney for CT Vanessa Roberts Avery and CT Attorney General William Tong said.

In violation of the CTMAP provider agreements and the federal Anti-Kickback Statute, its alleged Bethi and her dental practices submitted claims related to dental services rendered to state Medicaid patients. Those patients were referred to her by a third-party 'patient recruiting' company, the officials said.

From Jan. 1, 2019, through April 6, 2023, Bethi and her dental practices paid a patient recruiter $110 for each state Medicaid patient the recruiter referred to them, Avery and Tong said. The patient received services over and above routine preventative care, like cleanings and exams, and claims were submitted for dental services rendered to those patients.

"With each submitted claim, they impliedly certified that the conditions of receiving payment were met, including, but not limited to, that they did not pay kickbacks or violate any terms or provisions of the Connecticut Dental Health Partnership (“CTDHP”) provider manual concerning the submitted claim," state and federal officials noted.

The CTDHP provider manual, which is an addendum to both the CTMAP provider agreement and the CTMAP provider manual, expressly prohibits per-patient compensation for individuals referred to CMAP providers, officials said.

Bethi and her practices agreed to reimburse the Medicaid program. Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $13,946 to $27,894 for each false claim.

In a related federal criminal case, Bethi pleaded guilty to conspiracy to violate the federal anti-kickback statute, admitting that between 2016 and 2023, she paid patient recruiters more than $360,000 in kickbacks. Connecticut Medicaid reimbursed Bethi approximately $2.2 million for services rendered to patients recruited via kickbacks. On December 18, 2024, she was sentenced in New Haven federal court to two years of probation and was ordered to forfeit $500,000.

This case stems from a larger investigation into fraudulent activity by health care providers who submit kickback-tainted claims to the CTMAP for services rendered to Connecticut Medicaid patients referred by third-party patient recruiting companies.

This investigation was conducted by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of the Inspector General; the Connecticut Attorney General’s Office; and the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorneys Anne Thidemann and Elena Coronado, and Assistant Attorney General Joshua L. Jackson 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.