Chicago ASC Operator Pleads Guilty To Fraud, Tax Charges
The operator of two Chicago-area ambulatory surgical centers and a onetime fundraiser for disgraced former Congressman Jesse Jackson, Jr. and Illinois Gov. Rod Blagojevich has pled guilty to fraud and tax charges connected to their operation.
Raghuveer Nayak, 58, admitted that he paid kickbacks to physicians in lieu of patient referrals and impeded the Internal Revenue Service in the collection of taxes.
Nayak operated Rogers Park One-Day Surgery Center and Lake Shore Surgery Center. Surgeons and podiatrists at both facilities performed a variety of operations that did not require an overnight stay.
Nayak admitted that he paid kickbacks of about $200 to $300 per case to a podiatrist for the referrals some 142 times. He also admitted to laundering money through a longtime friend, Rajinder Bedi. According to the charges, Nayak paid Bedi more than $1 million for doing nothing. Bedi kept 30% of the proceeds and returned the rest to Nayak, which he used to pay the kickbacks. Bedi was granted immunity to testify against Nayak.
As part of a plea agreement, Nayak, a resident of Oak Brook, has conditionally pled guilty to a single count each of mail fraud and impeding the IRS. He was indicted last year by a federal grand jury in Chicago on 19 counts, including multiple counts of mail fraud, interstate travel in aid of racketeering and filing false tax returns.
Nayak, who testified as a witness in both of Blagojevich's criminal trials. A tape recording of Blagojevich discussed Nayak's alleged offer to raise $1.5 million for the former governor if he appointed Jackson to the U.S. Senate seat vacated by Barack Obama when he was elected president in 2008. Jackson pled guilty earlier this year to federal charges of misappropriating campaign funds.
Nayak, who held a variety of fundraising events at his home for Blagojevich, Jackson and even Obama, has denied the accusation. Federal prosecutors referred to him as the “bribe guy” during the proceedings against Blagojevich.
The U.S. Attorney's Office in Chicago said Nayak could face up to 20 years in prison and a $250,000 fine, but he is expected to receive less than the maximum penalties as a result of pleading guilty and avoiding a trial, which had been scheduled for next month. His sentencing is scheduled for late January.
