Corporate Compliance

Detroit physical therapist and patient recruiter sentenced in separate Medicare fraud cases

Compliance Monitor, June 9, 2010

U.S. District Court Judge Denise Page Hood in the Eastern District of Michigan sentenced a physical therapist and patient recruiter for their roles in separate Medicare fraud schemes, according to a Department of Justice (DOJ) press release.

Jay Jha, a licensed physical therapist, admitted to working for several sham occupational therapy services in Detroit, according to the DOJ. From 2003–2009, Jha signed approximately 336 false therapy files documenting that he provided physical therapy services to Medicare beneficiaries. Jha filed approximately $1.6 million in false claims to Medicare, which paid approximately $773,000 on those claims.

Timothy Pierce began working at Dearborn Medical Rehabilitation Center (DRMC), in 2006 as a patient recruiter. DRMC administrators hired Peirce to drive and pay kickbacks to Medicare beneficiaries intended to induce them to visit DRMC. Pierce, a Medicare beneficiary, also signed paperwork from DRMC indicating that he received injection and infusion procedures that DRMC physicians never performed. DRMC billed Medicare for approximately $9.1 million during the conspiracy. 

Jha will serve 27 months in prison and pay approximately $773,000 in restitution. Pierce will serve 48 months in prison and pay $6.09 million in restitution jointly with co-defendants.

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