Biggest Dental Embezzlement Cases of 2023
2023 brought two particularly significant dental fraud cases: a dentist sentenced to prison for stealing $1.2 million from his employer, and a multi-state dental network indicted for racketeering involving $30 million in Medicaid fraud. These cases reveal fraud at both the employee and ownership levels.
Case 1: The Dentist Who Stole $1.2 Million
What Happened
Dr. Jack Massarsky, a dentist and bookkeeper at a Hyannis, Massachusetts dental practice, was sentenced to two years in federal prison in May 2023 for embezzling more than $1.2 million from his employer.
Massarsky had worked at the practice between 2015 and 2021. In January 2023, he pleaded guilty to one count of mail fraud and one count of wire fraud.
How It Worked
Massarsky exploited his dual role as dentist and bookkeeper. He:
- Opened a secret bank account under the dental practice's name
- Deposited insurance reimbursement checks into the secret account
- Kept the money instead of depositing it into the practice's legitimate accounts
In addition to the $1.2 million embezzlement, Massarsky also submitted a fraudulent application to the Health Resources and Services Administration Provider Relief Fund using the practice's name. He fraudulently obtained more than $52,000 in pandemic relief funds, which he deposited into the secret bank account.
Sentence
- Two years in federal prison
- Three years of supervised release
- Paid more than $1.2 million in restitution prior to sentencing
What Should Have Caught It
- Independent bookkeeping separate from clinical staff
- Bank account verification by practice owner
- Review of all accounts under the practice's name
- Audit of insurance payment deposits
This case illustrates the danger of consolidating financial responsibilities without oversight. Massarsky had complete control over the financial process, allowing him to operate the scheme for six years.
Case 2: Savani Group - Multi-State RICO Conspiracy
What Happened
On January 25, 2023, the U.S. Department of Justice announced an indictment of 12 individuals operating a multi-state network of dental practices and related dental businesses known as the Savani Group.
Six defendants were charged with RICO conspiracy. Four were licensed dentists. The scheme allegedly involved:
- Visa fraud
- Health care fraud
- Wire fraud involving federal tax evasion
- Money laundering
- Obstruction of justice
The conspiracy involved recruiting foreign workers under false pretenses and fraudulently billing Medicaid.
The Scale
While the full extent was not detailed in the 2023 indictment, this case eventually resulted in 2026 convictions with over $30 million in documented Medicaid fraud.
What It Means
The Savani Group case differs from typical employee embezzlement because it was directed from the ownership level. But it illustrates several important points:
- Multi-location practices have more complexity and more opportunity for fraud
- Billing fraud at scale can reach tens of millions
- RICO charges carry severe penalties beyond standard fraud charges
- Federal investigators have tools to uncover complex schemes
For legitimate DSOs and multi-location practices, this case underscores the importance of compliance programs and independent oversight.
Industry Statistics in 2023
Beyond the major cases, industry experts continued to document the scale of the embezzlement problem:
From Prosperident (2023 data):
- Nearly 50% of dentists have already been victims of embezzlement
- 70% of dentists will be affected during their careers
- Average theft before discovery exceeds $100,000
- Embezzlers typically steal 3% to 7% of monthly revenue
From ADA surveys:
- 35% of practices have been embezzled once
- 17% have been embezzled more than once
These statistics suggest that the publicized cases represent only a fraction of actual embezzlement occurring in dental practices.
Common Factors in 2023 Cases
Trust in Dual Roles
Massarsky held both clinical and financial roles. This consolidation of trust created the opportunity for theft without oversight.
Best practice: Financial responsibilities should be separate from clinical responsibilities, with independent verification.
Lack of Independent Banking Oversight
Massarsky opened a secret bank account under the practice's name. This should not have been possible without owner awareness.
Best practice: Practice owners should receive direct notification of any accounts opened under the business name. Banking relationships should be reviewed regularly.
Complex Organizations Create Opportunity
The Savani Group operated across multiple states with complex corporate structures. This complexity made fraud detection more difficult.
Best practice: Multi-location practices need centralized financial oversight with independent audit functions.
What Practice Owners Should Take From 2023
Verify Banking Independently
Never assume that the only bank accounts in your practice's name are the ones you know about. Periodically verify with your bank what accounts exist under your business name and tax ID.
Separate Financial Duties
If you have a staff member handling bookkeeping, they should not also control banking, deposits, and reconciliation. Separation creates natural checkpoints.
Maintain Owner Oversight
Even if you delegate financial management, review bank statements personally. Look for unfamiliar accounts, unusual patterns, or anything that does not make sense.
For Multi-Location Practices
Implement centralized financial controls with independent audit functions. Location-level autonomy in financial matters creates vulnerability.
Consider the Scale
The Massarsky case involved $1.2 million over six years. That is $200,000 annually. For most practices, that would be a significant portion of profit.
The Savani case involved $30 million. At that scale, the fraud represents a fundamental failure of oversight.
Both cases could have been caught much earlier with proper controls.
The Prosecution Trend
Both major 2023 cases resulted in criminal prosecution:
- Massarsky: Two years federal prison
- Savani Group: Multiple defendants facing federal charges (later convicted in 2026)
Prosecutors are increasingly pursuing dental fraud cases, both for employee embezzlement and billing fraud. The days when dental fraud was considered too small for federal attention appear to be ending.
This matters because prosecution creates deterrence. When embezzlers know they face real prison time rather than just termination, the calculus changes.
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