Thursday, October 1, 2026
Dr. Devi Reddy, a Long Beach physician charged with illegally selling prescription drugs and medical fraud last month, was reinstated to practice at Long Beach Medical Center but is restricted from prescribing certain medications.
FBI agents and the Health Care Fraud Task force arrested Reddy, 65, at his office, at 732 E. Park Ave., on April 14, charging him with knowingly distributing controlled substances OxyContin and Percocet for illegitimate medical purposes, from December 2008 to January 2010. When the medical center learned of Reddy’s arrest the next day, they suspended him from admitting and treating patients, according to Sharon Player, LBMC director of communications. Reddy is not a paid employee of the hospital.
The medical center then learned that a U.S. District Court ruled on April 16 that Reddy could continue to prescribe medications except for OxyContin and Percocet. “So based on the courts decision, I think on April 19, the medical board of Long Beach Medical Center met and reinstated his privileges to admit and treat patients, but we prohibited him from ordering any controlled substances, including OxyContin and Percocet,” Player said.
Reddy must also advise the medical center of the names of any physicians who may cover for him while he cares for patients at the hospital. “And if they feel that it’s medically necessary, they will write the orders for the patient,” Player said. “And so he’s supervised in that respect.”
The investigation into Reddy’s alleged illegal practices involved undercover FBI and New York City Police Department agents, as well as a non-law enforcement individual who agreed to work with authorities. On several occasions the agents wore audio and video recording devices while meeting Reddy in his office, when he provided them with proscriptions, usually 30 milligrams of the drugs in exchange for $100. During the meetings, Reddy neither performed medical examinations nor requested additional medical information, according to a court document.
The document also stated that Reddy mailed prescriptions. On Dec. 21, 2009, an agent went to Reddy's office, and in addition to obtaining two prescriptions for $100 each, he paid Reddy $100 more to mail a future prescription to his address.
Reddy is also being charged with insurance fraud. On May 19, 2009, an agent provided Reddy with an insurance card, and a review of the billing information for the card showed that Reddy billed the insurance company for the office visit.
Reddy declined to comment on the case.
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