Corporate Compliance

Rehab facility owner pleads guilty to submitting false claims

Compliance Monitor, September 30, 2009

Suresh Chand, a Detroit rehabilitation facility owner, pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of conspiracy to launder money amounting to $18.2 million in fraudulent charges, according to a Department of Justice (DOJ) release.
Chand, 44, owned and operated Continental Rehab Services Inc., which purported to provide physical and occupational therapy services to Medicare patients. In his guilty plea, Chand admitted he worked with another Detroit area rehabilitation center, Pacific Management Services Inc., to create false physical and occupational therapy files used to defraud Medicare.
Chand recruited Medicare patients to provide their Medicare numbers and signatures by supplying cash kickbacks and Vicodin and Xanax prescriptions obtained from a physician who had never seen the Medicare patients. In addition, Chand and co-conspirators paid licensed therapists to sign false progress notes to report provided therapy, even though the treatments never occurred, according to the DOJ.
Chand faces a statutory maximum of 30 years in prison and a $750,000 fine at his his January 13, 2010, sentencing.

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