Corporate Compliance

Detroit home health care owner pleads guilty to $6.97M Medicare fraud scheme

Compliance Monitor, October 20, 2010

U.S. District Court Judge Denise Page Hood in Detroit sentenced the owner of a home health agency to 63 months in prison and ordered him to pay $6.97 million in restitution, jointly with co-conspirators, according to a Department of Justice (DOJ) press release.

Christopher Collins, 39, pleaded guilty to one count of conspiracy to commit healthcare fraud for the submission of false and fraudulent claims to Medicare. Muhammad Shabab of All American Home Care Inc., hired Collins to work as a nurse and provide physical and occupational therapy services to homebound Medicare beneficiaries. Collins offered beneficiaries cash kickbacks in exchange for their Medicare patient information, according to the DOJ.

Collins took over ownership duties of All American from Shabab in 2009 and admitted to illegally recruiting hundreds of Medicare beneficiaries for medically unnecessary therapy services or services that were never provided.

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