Show-Me State Times

A St. Louis area physician, Dr. Asim Muhammad Ali, was sentenced on Monday by U.S. District Judge Henry E. Autrey to 70 months in prison following convictions in two separate criminal cases from 2020 and 2024.

Dr. Ali, 54, was ordered to pay restitution totaling $1,845,916 for the first case and $3,902 for the second. The charges stemmed from a series of illegal activities involving controlled substances and fraudulent billing practices.

In the first case, authorities found that Dr. Ali conspired to pay kickbacks for urine specimens sent to his business, Central Diagnostic Laboratory. He also admitted to signing prescriptions for controlled substances for patients suspected of selling or distributing their medications illegally. Additionally, Dr. Ali pre-signed prescriptions at another business he owned—the Institute for Pain Management LLC—without seeing patients or verifying their medical needs.

Restitution payments were ordered as follows: $950,381 to the Centers for Medicare and Medicaid Services (CMS), $13,993 to Tricare, and $881,542 to Missouri Medicaid.

The second case involved an arrangement with Psych Care Consultants LLC—a company owned by Dr. Mohd Azfar Malik—where Dr. Ali agreed to perform services for Medicare patients but billed under Dr. Malik’s name and number. Although Medicare paid claims described as “annual wellness visits,” these appointments were conducted only by phone rather than in person.

Dr. Ali pleaded guilty in the 2020 case to conspiracy to illegally distribute controlled substances, illegal prescribing of controlled substances, paying illegal kickbacks for referrals, and submitting false claims. In the 2024 case he pleaded guilty to conspiracy related offenses involving drug distribution and maintaining a drug-involved premises.

Dr. Malik pleaded guilty separately to making false statements related to health care matters after admitting he submitted claims indicating he performed services when he was not present or out of state or country. He also billed insurers for ketamine infusions performed by Dr. Ali despite knowing about Dr. Ali’s indictment and lack of proper DEA registration at that time; this resulted in losses totaling $19,442 across Medicare, Medicaid and private insurers.

In August, sentencing for Dr. Malik included five years probation along with a $20,000 fine and an order of restitution totaling $19,442; he has agreed to surrender his DEA registrations authorizing him to administer controlled substances.

“Health care providers who unlawfully distribute dangerous and addictive controlled substances not only endanger the lives of vulnerable individuals but also undermine the integrity of our nation’s health care system. Dr. Ali exploited the trust placed in him by his patients and engaged in kickback schemes for personal financial gain,” said Linda T. Hanley, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “Today’s sentencing highlights HHS-OIG’s commitment to working with our law enforcement partners to hold health care providers accountable for their unlawful actions.”

The investigation involved multiple agencies including HHS-OIG, FBI, Drug Enforcement Administration (DEA), and Missouri Medicaid Fraud Control Unit; Assistant U.S Attorneys Amy Sestric prosecuted both cases with Derek Wiseman and Jonathan Clow joining her on the earlier prosecution.