On November 7, 2016, the Department of Justice announced that the co-owner of a Detroit home health care company was sentenced to 96 months in prison for his role in a Medicare fraud scheme that caused approximately $33 million in losses. The U.S. District Judge from the Eastern District of Michigan also ordered him to pay $38,150,113.64 in restitution. The man was convicted at trial of one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks.
According to evidence presented at trial, the man participated in a scheme in which, from 2006 through 2011, he and his co-conspirators obtained patients by paying cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with companies owned by a co-defendant. The evidence also showed that the man and his co-defendant paid kickbacks to physicians to refer patients to the companies for home health care services that were medically unnecessary as well as not provided.
On October 28, 2016, the man’s co-defendant was sentenced to serve 360 months in prison and to pay $40,488,106.98 in restitution. The co-defendant was convicted of one count of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of conspiracy to commit money laundering, two counts of money laundering, and two counts of obstruction of justice.
See the DOJ Announcement