Wellesley Psychiatrist Sentenced to Over Eight Years in Prison for $19 Million Insurance Fraud Scheme
Psychiatrist Used Proceeds to Finance Luxury Lifestyle Including Multi-Million Dollar Homes and Expensive Jewelry
A Wellesley psychiatrist has been sentenced to a little more than eight years in prison for orchestrating a massive $19 million insurance fraud scheme for which he was first indicted in 2020. Gustavo Kinrys, 53, was found guilty of billing Medicare and private insurance companies for treatments he never provided and attempting to obstruct justice to cover his tracks.
Acting United States Attorney Joshua S. Levy emphasized the gravity of Kinrys’ actions, stating, “Dr. Kinrys undermined the trust that our healthcare system relies upon. For years, he diverted millions of dollars in critical resources from those in genuine need of medical attention, relying on fraud to finance his luxury lifestyle. This defendant’s driving motivation was greed. His attempts to obstruct justice in order to conceal his scheme further exemplify his blatant disregard for the law.”
Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, remarked, “Gustavo Kinrys lied to Medicare and private insurers, billing them for over $19 million worth of mental health treatments he never provided and then obstructed our investigation in an attempt to cover up his crimes. In doing so, Dr. Kinrys betrayed the trust of his vulnerable and mentally ill patients, and taxpayers, to fund a lavish lifestyle.”
Fraudulent Activities and Luxury Homes in Wellesley and Nantucket
Kinrys was a licensed psychiatrist who owned and operated Advanced TMS Associates. Located in Natick, TMS Associates engaged in a variety of fraudulent billing practices centered around transcranial magnetic stimulation (TMS) therapy and psychotherapy for patients suffering from depression.
From January 2015 to December 2018, he claimed reimbursements for thousands of sessions and services he never rendered, totaling $19 million. Notably, he billed approximately $10.6 million for TMS sessions never provided, including over 8,000 TMS sessions for 74 patients who never received the treatment. TMS therapy is a noninvasive method of brain stimulation that uses rapidly alternating or pulsed magnetic fields to induce electrical currents directed at a patient’s cerebral cortex. It is mainly used as a way to treat depression.
Kinrys also charged millions for psychotherapy sessions that never took place, including over 900 face-to-face sessions purportedly conducted while he was vacationing in locations like the Bahamas, the Dominican Republic, and the Czech Republic. On some days, he billed for more than 24 hours’ worth of services, including one instance in July 2017 when he claimed to have conducted psychotherapy sessions for 70 patients in a single day, despite being abroad.
Kinrys then used the ill-gotten gains to fund a lavish lifestyle, including paying off a $1.8 million home in Wellesley, purchasing over $600,000 in jewelry from high-end retailers such as Cartier, Van Cleef, and Tiffany’s, and acquiring a $2.1 million vacation home in Nantucket.
Efforts to Conceal Fraud
Kinrys went to great lengths to cover up his fraudulent activities. He made numerous false statements to patients, the billing company, and the insurers. When Medicare and private insurers requested records to support his claims, Kinrys fabricated and forced his employees to create fake patient records. These false records were submitted to justify the exorbitant claims.
In response to a subpoena from the Department of Health and Human Services Office of Inspector General in July 2018, Kinrys produced additional fake patient records, falsely indicating that patients had received treatments and their conditions had improved. This obstructive behavior further demonstrated his blatant disregard for the law.
Conviction and Sentencing
Ultimately, Kinrys was convicted on multiple charges, including seven counts of wire fraud, six counts of making false statements related to healthcare, and one count of obstructing a criminal healthcare investigation. U.S. District Court Judge Denise J. Casper handed down a 99-month prison sentence to Kinrys, who must also undergo three years of supervised release following his imprisonment. The court announced that it would determine the exact restitution and forfeiture amounts at a later hearing.
In response to the sentencing, Acting United States Attorney Joshua S. Levy reaffirmed the work his office was doing to combat insurance fraud. “This sentence underscores our unwavering commitment to prosecuting those who exploit the healthcare system for personal gain. When someone commits healthcare fraud, we all suffer – it drives up costs for everyone, diverts precious resources, and erodes the public’s confidence in our healthcare providers. Our office will continue to prioritize the investigation and prosecution of those who engage in such egregious misconduct.”
Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, highlighted the significant impact of Kinrys’ crimes, noting, “This 99-month sentence reflects the seriousness of Dr. Kinrys’ crimes – his violation of the public’s trust in his position as a physician and his theft from the American taxpayers.”
