Connecticut Dentist Pays More than $600K to Settle False Claims Allegations

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and William Tong, Connecticut Attorney General, today announced that LAKSHMI BETHI, DMD and her former businesses, NEW HAVEN DENTAL LLC, NEW HAVEN FAMILY DENTAL LLC, and NEW HAVEN FAMILY DENTAL GROUP LLC, have entered into a civil settlement agreement with the federal and state governments and have paid $608,296.39 to resolve allegations that they violated the federal and state False Claims Acts.

Bethi is licensed to practice dentistry in Connecticut. Bethi, New Haven Dental LLC, New Haven Family Dental LLC, and New Haven Family Dental Group LLC were enrolled as dental providers in the Connecticut Medical Assistance Program ("CTMAP"), which includes the state's Medicaid program.

It is alleged that, in violation of their CTMAP provider agreements and the federal Anti-Kickback Statute, Bethi and her dental practices submitted claims to the CTMAP related to dental services rendered to Connecticut Medicaid patients referred to the businesses by a third-party "patient recruiting" company. Bethi and her dental practices paid a patient recruiter $110 for each Connecticut Medicaid patient the recruiter referred to them whenever the patient received services over and above routine preventative care, such as dental cleanings and exams, and submitted claims 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.

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.

To resolve the allegations under the federal and state False Claims Acts, Bethi, New Haven Dental LLC, New Haven Family Dental LLC, and New Haven Family Dental Group LLC agreed to pay $608,296.39 to reimburse the Medicaid program for conduct occurring from January 1, 2019, through April 6, 2023.

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.