NEW BERN, N.C. – Dr. Sanjay Kumar, a physician formerly practicing in New Bern, North Carolina, has been sentenced to a significant 240 months in federal prison. This stern sentence follows Kumar’s conviction for the unlawful distribution of oxycodone, acting outside the bounds of legitimate medical practice, engaging in concealment money laundering, and income tax evasion. At the conclusion of his two-decade prison term, Kumar, the “Kumar Doctor” as he became infamously known, will also face three years of supervised release. Furthermore, the court has mandated that Kumar repay $471,758.40 to the Internal Revenue Service and levied a criminal fine of $50,000.
Dr. Sanjay Kumar, 54, previously ran a small medical office named “New Bern Medicine and Sports Rehabilitation.” Court documents reveal that from 2004 to 2011, Kumar initially operated a practice focused on physiatry, treating patients suffering from chronic pain. During this period, his approach involved a range of treatments such as physical therapy, massage, electrical stimulation (TENS), and non-narcotic medications. Interestingly, prior to his dramatic shift, “kumar doctor” was reportedly strongly against using opioid narcotics for chronic pain management, rarely prescribing them. He even acknowledged the potential for financial gain if he were to prescribe opioids indiscriminately, stating he could have a “line out the door” of people willing to pay for prescriptions.
However, a significant turning point occurred in the summer of 2011. Kumar’s practice faced imminent financial ruin after Blue Cross Blue Shield, his primary insurance reimbursement provider, terminated his contract due to the discovery of substantial billing irregularities. Faced with financial collapse, Kumar drastically altered his practice model. He transitioned from a therapy-based clinic into what became, in essence, an opioid-based pill mill. From this point forward, opioid narcotics, primarily oxycodone, were prescribed readily and without proper medical evaluation to patients, often during their very first visit. This dramatic shift was contingent on cash payments of $200 per visit.
By 2012, the transformation was complete. Kumar had dismissed his entire staff and adjusted his clinic hours to operate primarily in the late afternoon and evening. The number of prescriptions written by “kumar doctor” for Schedule II controlled substances, such as oxycodone, exploded. In 2011, he had written approximately 100 such prescriptions. However, in the years leading up to his arrest, between 2013 and 2016, Kumar was issuing thousands of narcotic prescriptions annually. Over the period of his offense, it is estimated that Kumar prescribed over 1.2 million oxycodone pills alone.
The alarming prescribing patterns of “kumar doctor” did not go unnoticed. Complaints from local pharmacies triggered the formation of a multi-agency task force in 2014, comprising local, state, and federal law enforcement. The ensuing investigation revealed disturbing practices. Agents conducted surveillance and observed patients lining up outside Kumar’s office before opening hours and leaving en masse afterwards. Kumar was observed leaving with patients at times, while others waited at the office. When a pole camera was installed to monitor the premises, patients, under Kumar’s direction, intentionally obstructed it in exchange for “free visits” – visits that invariably concluded with narcotics prescriptions.
Testimony from former patients during the trial further illuminated the inner workings of Kumar’s pill mill. Cash was the only accepted form of payment, with each visit costing $200. Crucially, every patient received a prescription for oxycodone or other controlled substances at every appointment, regardless of their medical history, prior treatments, or diagnoses. Patients were enrolled in a “monthly maintenance program,” requiring them to return regularly for refills. Disturbingly, during these encounters, “kumar doctor” was often seen carrying a handgun.
The culmination of the investigation came on June 21, 2016, when Kumar was arrested, and search warrants were executed at his residence and business. At the time of his arrest, officers found a loaded handgun, three magazines of ammunition, and over $145,000 in cash on Kumar’s person. Subsequent searches of his home uncovered an arsenal of 35 additional firearms, many loaded with high-capacity magazines, and over 40,000 rounds of ammunition. Investigators also discovered a significant amount of concealed cash – nearly $450,000 – hidden in five large duct-taped PVC tubes.
Analysis of medical records seized from Kumar’s practice revealed the shocking extent of his illicit operation. Over 97% of approximately 600 patients who sought treatment from “kumar doctor” after June 2011 received an opioid prescription during their first visit. These prescriptions were routinely issued without reviewing prior medical records, without urine drug screens, and without any attempt to explore alternative treatments, irrespective of a patient’s history of opioid use or abuse.
The financial investigation exposed further layers of criminal activity. In 2013, Kumar ceased maintaining financial records. Between 2013 and 2016, he made 121 separate cash deposits into a dozen different bank accounts, totaling over $439,000. To evade detection, Kumar structured these deposits to be under the reporting threshold, visiting multiple banks consecutively to deposit smaller amounts. Beyond cash deposits, Kumar spent his illicit profits lavishly. Between 2013 and 2016, he spent over $175,000 on vehicles, $70,000 at Best Buy, $60,000 on real estate, and hundreds of thousands more through Amazon purchases. Furthermore, investigations into Kumar’s federal income tax filings revealed fraudulent personal and corporate tax returns. Despite processing thousands of patient visits annually at $200 cash per visit, Kumar falsely reported losses on his tax returns.
U.S. Attorney Robert J. Higdon, Jr. expressed strong condemnation of Kumar’s actions, stating, “In the summer of 2011 and from that point until now, Dr. Kumar turned his back on the medical profession and on the values of ethics and the principles of human care and decency that govern the behavior of medical professionals. Put more directly, he moved from being a doctor to being a common, ordinary and dangerous drug trafficker.”
The sentencing was handed down by U.S. District Judge Louise W. Flanagan. The Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service-Criminal Investigation (IRS-CI), the New Bern Police Department, the State Bureau of Investigation Diversion and Environmental Crime Unit, and the Craven County Sheriff’s Office conducted the investigation. Assistant United States Attorneys Adam F. Hulbig and Nick J. Miller prosecuted the case on behalf of the government.
