In a shocking revelation, Gustavo Kinrys, a 53-year-old psychiatrist from Wellesley, Massachusetts, has been sentenced to 99 months in prison for his involvement in a staggering $19 million insurance fraud scheme. The sentencing, handed down by U.S. District Court Judge Denise J. Casper, also includes three years of supervised release and an order to pay restitution and forfeiture, the amount of which will be determined at a later hearing.
Kinrys, who owned and operated Advanced TMS Associates in Natick, Massachusetts, was convicted in October 2023 on multiple counts of wire fraud, false statements relating to health care matters, and obstructing a criminal health care investigation. The conviction followed a jury trial that exposed the extent of his fraudulent activities.
Between January 2015 and December 2018, Kinrys engaged in various fraudulent billing schemes, seeking reimbursement for $19 million in services he never rendered. He billed Medicare and private insurers $10.6 million for thousands of transcranial magnetic stimulation therapy sessions that were never provided, including over 8,000 sessions claimed for 74 patients who never received a single session. Additionally, Kinrys billed for millions of dollars' worth of psychotherapy sessions he never conducted, including over 900 face-to-face sessions he falsely claimed to have provided while on vacation in locations such as the Bahamas, the Dominican Republic, and the Czech Republic.
The extent of Kinrys' fraudulent activities was astounding. On 382 days, he billed Medicare and private insurers for having provided more than 24 hours' worth of psychotherapy services in a single day. In one particularly egregious instance in July 2017, Kinrys claimed to have provided hour-long psychotherapy sessions to 70 different patients in a single day, all while he was outside the United States on vacation.
Kinrys used the proceeds from his fraudulent scheme to finance a lavish lifestyle. He paid off a $1.8 million home in Wellesley, purchased over $600,000 in jewelry from high-end retailers such as Cartier, Van Cleef, and Tiffany's, and acquired a $2.1 million vacation home in Nantucket.
To conceal his crimes, Kinrys made numerous false statements to his patients, billing company, and insurers. When Medicare and private insurers requested records to justify his exorbitant claims, Kinrys created fake patient records and forced his employee to do the same. He continued his obstructive behavior even when faced with a subpoena from the Department of Health and Human Services Office of Inspector General in July 2018, producing additional fake patient records that falsely represented patients' conditions as improving.
Acting United States Attorney Joshua S. Levy condemned 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."
The sentencing of Gustavo Kinrys serves as a stark reminder of the consequences of healthcare fraud. It underscores the commitment of law enforcement agencies to investigate and prosecute those who exploit the healthcare system for personal gain. The case also highlights the importance of vigilance and oversight in detecting and preventing such fraudulent activities, ensuring that healthcare resources are directed to those who genuinely need them.
