Arizona Doctor Sentenced to Nearly 8 Years for $36.5 Million Healthcare Fraud

An Arizona doctor has been sentenced to seven and a half years in prison for orchestrating a healthcare fraud scheme that generated $36.5 million in just six months. Dr. Irfan Fazil, 54, pleaded guilty to felony charges including fraudulent schemes, illegal control of an enterprise, theft, and illegal procurement of a dangerous drug.

Fazil was accused of masterminding the scheme, which involved bogus treatments and "phantom billing" for services that were never rendered. The funds were allegedly siphoned overseas to Dubai and Pakistan. In addition to the prison sentence, he will serve seven years of probation following his release and was ordered to forfeit all of his assets, which include real estate, medical facilities, vehicles, aircraft, jewelry, currency, cryptocurrency, and gold bars.

Arizona Attorney General Kris Mayes stated that Fazil exploited his position to steal from the Arizona Health Care Cost Containment System (AHCCCS), a program designed to provide healthcare for the state's vulnerable residents. "He billed for thousands of X-rays and other medical treatments that could not possibly have been performed, and treated by AHCCCS as his personal bank account," Mayes said.

Fazil used three business entities—Bio Family Clinic Inc., Yuma Mobile X-Ray, and Yuma Kidney and Dialysis—to bill AHCCCS for radiology services between July 1 and December 31. During this period, his businesses collected over $36 million from the state's Medicaid program. This marked a significant increase from the $4.7 million collected in the preceding two and a half years.

An investigation revealed that some patients were billed for an implausible number of services, with one patient’s account showing over 1,700 X-rays in a single six-month period, a volume described by the attorney general's office as "physically impossible" and potentially harmful due to radiation exposure.

Before his indictment in June, Fazil cultivated an image as a respected healthcare professional. He and his wife, Nadia Hanif, starred in a YouTube health show, published a charity magazine, and amassed a collection of luxury assets. Fazil had also twice been recognized as a top kidney doctor.

Prosecutors presented evidence that Fazil maintained close ties to Pakistan and Dubai, where his wife reportedly owns an operating clinic. Bank records indicated approximately $1 million was transferred from Fazil's accounts to these overseas locations. While his wife was not formally charged, Fazil's brother had previously been deported from the U.S. to Pakistan. Evidence also suggested potential ties between Fazil's associates and Mexican drug cartels.

Former employees and patients have expressed feelings of betrayal and anger following the revelations. Some reported losing paychecks and retirement savings, and expressed concern about damage to their professional reputations.