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Massachusetts Doctor Sentenced to Three Years in Prison in $40 Million Medicare Fraud Scheme

New Jersey

By: Tracie Carter 

 

A Massachusetts physician will spend three years in federal prison for participating in telemedicine fraud and illegal kickback arrangements that generated more than $40 million in fraudulent health care claims.

According to information released by U.S. Attorney Robert Frazer, Le Thu, 71, of Boston, was sentenced October 6, 2026, in Newark federal court to 36 months in prison, followed by two years of supervised release. She was also ordered to pay more than $27 million in restitution.
 

Federal authorities said Thu participated in two separate schemes involving fraudulent medical prescriptions, genetic testing orders and medical equipment billed to government-funded health care programs.
 

Between May 2014 and April 2017, prosecutors said Thu accepted approximately $35 for each prescription she approved through a telemedicine company. 

The prescriptions included specialized medications and medical equipment, with some charges submitted to TRICARE, the health insurance program serving military personnel and their families.

 

Investigators determined that the arrangement resulted in hundreds of thousands of dollars in payments for medications obtained through illegal kickbacks.

 

In a second scheme operating from March 2017 through November 2020, Thu approved thousands of orders for genetic testing and medical equipment without examining or providing medical care to the Medicare beneficiaries involved.
 

Authorities said she also directed individuals without medical training to sign medical documents that falsely suggested she had reviewed patients’ conditions and determined the services were necessary.

 

Prosecutors said Thu received more than $200,000 for approving the fraudulent orders.

 

The scheme ultimately generated more than $40 million in Medicare claims, with the federal program paying out over $27 million.

 

Thu pleaded guilty to the federal charges in May and June 2025 before U.S. District Judge Susan D. Wigenton in Newark.
 

Her sentence includes restitution intended to recover money improperly paid through the fraudulent arrangements.