Corporate Compliance

Detroit pain management clinic owner to pay more than $9M in Medicare fraud scheme

Compliance Monitor, April 14, 2010

U.S. District Judge, Sean F. Cox sentenced Suresh Chand to 81 months in prison and to jointly pay $9.8 million with co-defendants for his role in various schemes to defraud Medicare, according to a Department of Justice (DOJ) press release.

Chand, 46, pleaded guilty September 2, 2009 for submitting claims for Medicare reimbursement that he never provided. According to the DOJ, Chand owned and operated two separate pain management clinics in Warren, MI where he and co-conspirator Jose Castro-Ramirez, MD, created false therapy files for patients he recruited through cash and prescription kickbacks. Chand and co-conspirators submitted approximately $18 million in physical and occupational therapy for Medicare reimbursement. Medicare paid approximately $8.5 million based on those claims.

Castro-Ramirez faces a maximum penalty of 10 years in prison and a $250,000 fine for healthcare fraud conspiracy and substantive healthcare fraud. He faces an additional 20 years and $250,000 fine for money laundering conspiracy.

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