EMAIL TO A FRIEND COMMENT

 

Prison and Fine for Role in $13.8 Million Medicare Fraud


A Detroit-area resident was sentenced to serve 60 months in prison for his role in a $13.8 million Medicare fraud scheme. In addition to his prison term, the 50-year-old resident of Farmington Hills, Michigan, was sentenced to serve two years of supervised release and was ordered to pay $1,734,801 in restitution, jointly and severally with his co-defendants. He had pleaded guilty on July 12, 2013, to one count of conspiracy to commit health care fraud.

 

According to court records, on or around May 2009, the man purchased Quantum Home Care Inc. with two co-conspirators. He paid kickbacks to recruiters to obtain Medicare beneficiary information used to bill Medicare for home health services – including physical therapy and skilled nursing services – that were never rendered. He was the administrator of Quantum and was responsible for the submission of false and fraudulent claims to Medicare based on falsified files created by the co-conspirators.

 

Medicare paid approximately $1.7 million to Quantum for physical therapy and skilled nursing services that Quantum purported to render between approximately June 2009 and September 2011. According to court documents, between 2008 and 2009, the man’s co-conspirators acquired control of three other home health care companies. The four companies, including Quantum, received approximately $13.8 million from Medicare in the course of the conspiracy.

 

One of his co-conspirators pleaded guilty on January 5, 2012, to one count of conspiracy to commit health care fraud and one count of money laundering and is scheduled for sentencing on May 21, 2014. The other co-conspirator pleaded guilty on August 28, 2012, to one count of conspiracy to commit health care fraud and is scheduled for sentencing on May 14, 2014.

 

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