Corporate Compliance

Detroit home healthcare owner faces fine, prison time for fraud scheme

Compliance Monitor, February 24, 2010

Detroit-area resident Muhammad Shahab pleaded guilty in a U.S. district court house to one count of conspiracy to commit healthcare fraud, according to a Department of Justice (DOJ) press release. Shahab faces 10 years in prison and a $250,000 fine for his role in organizing a home healthcare fraud scheme.
Shahab helped finance and establish Patient Choice Home Healthcare Inc. and All American Home Care Inc. for the purpose of recruiting and paying cash kickbacks to Medicare beneficiaries in exchange for their beneficiary numbers and signatures indicating they received treatment from either health facility. Shahab then billed Medicare for home health visits that never occurred at either facility.
Shahab also supplied kickbacks to physicians and physical therapists to sign medical documents falsely indicating they provided treatment. From 2007 to 2009, Shahab and his co-conspirators submitted approximately $10.9 million in claims to the Medicare program.

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