DETROIT-AREA MEDICARE FRAUDSTER SENTENCED FOR ROLE IN $7 MILLION HEALTH CARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, December 16, 2015

Home Health Care Agency Owner Sentenced to 80 Months for Directing Detroit-Area Medicare Fraud Scheme

The owner and operator of a Detroit-area home health care agency who directed a $7 million health care fraud scheme was sentenced today to 80 months in prison.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.

Amer Ehsan, 44, of Canton, Michigan, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan, who also ordered Ehsan to pay $4,567,967.12 in restitution.

In connection with his guilty plea, Ehsan admitted that as he owner and operator of Advance Home Health Care Services Inc. (Advance), a home health care agency in the Detroit area, he conspired with physicians, physical therapists and patient recruiters to bill the Medicare program for unnecessary home health care and therapy services and that he paid co-conspirator physicians to refer Medicare beneficiaries to Advance and sign medical documents falsely certifying that they required home health care.  Ehsan also admitted that at his direction, Medicare beneficiaries received cash kickbacks in exchange for signing multiple blank physical therapy records.

Additionally, Ehsan admitted that he owned and controlled Michigan Rehab and Management Services LLC, which he used to sell information about Medicare beneficiaries and corresponding fictitious patient files to other Detroit-area home health care agencies.  Medicare paid a total of more than $4.5 million as a result of Ehsan’s conduct with these two companies.

Ehsan was part of a wide-ranging scheme that involved 12 defendants, all of whom have pleaded guilty.

The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan.  Trial Attorney Elizabeth Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Wagner and Special Trial Attorney Katie R. Fink of the Eastern District of Michigan prosecuted this case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

PHANTOM OUTLAW MOTORCYCLE CLUB LEADER SENTENCED TO 35 YEARS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, September 8, 2015

Detroit Gang Leader Sentenced to 35 Years for Violent Racketeering-Related Crimes

The National President of the Phantom Outlaw Motorcycle Club and “Three-Star General” of the Vice Lords street gang in Michigan was sentenced today to serve 35 years in prison for violent racketeering-related crimes.  To date, 12 other defendants have been convicted of federal offenses related to their roles in this violent conspiracy.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.

The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit.  Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI, law enforcement authorities linked various acts of violence in Detroit to the Phantom Outlaw Motorcycle Club and the Vice Lords street gang, and identified the leaders and key members of these gangs, who now have been held accountable.

Antonio Johnson, aka Mister Tony, MT or Big Bro, 39, of Detroit, was convicted on March 16, 2015, after a multi-week trial, of engaging in a racketeering conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence, and being a felon in possession of firearms.  U.S. District Judge Paul D. Borman of the Eastern District of Michigan presided over the trial and imposed today’s sentence.

“Through his leadership positions in two gangs, Johnson spread violence in Detroit and beyond,” said Assistant Attorney General Caldwell.  “Here, through the Detroit One initiative, the collective efforts of federal agents, state and local police, and private citizens helped thwart a mass murder plot and ensure the convictions and lengthy prison sentences of Johnson and his fellow gang members.  This case is emblematic of law and order at its best: a true partnership between law enforcement authorities and the community they serve.”

“Gang wars fuel violence in our community, and the resulting drive-by shootings create unacceptable risk to innocent lives,” said U.S. Attorney McQuade.  “The Detroit One partners are systematically dismantling violent street and motorcycle gangs that are destroying the peace in our neighborhoods.”

“This significant sentence is the result of our on-going state and federal effort to combat gun violence in our communities,” said Special Agent in Charge Shoemaker.  “This investigation and resulting convictions is proof again that the Detroit One initiative and the CVRP are making a significant difference in our communities, there is a lot of work to do, but ATF is committed in the fight against violent crime.”

At trial, evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles.  The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords, a well-known street gang originating from Chicago, and that Johnson was both the National President of the Phantoms and a leader of the Vice Lords in Michigan.  The evidence showed that Johnson used the Vice Lords to assist the Phantoms in various criminal endeavors, including to search for and violently attack rivals of the Phantoms.

Specifically, according to the evidence presented at trial, on Sept. 8 2013, Johnson ordered numerous Phantoms to forcibly steal the “rags,” or motorcycle vests, of members of the rival Satan Sidekick Motorcycle Club.  The evidence showed that, during Phantoms’ attempt to do so, a Satan Sidekick member was shot in the face and a Phantom member was stabbed.

According to the evidence presented at trial, a few weeks later, Johnson and his fellow Phantoms plotted the murder of three members of the rival Hell Lovers Motorcycle Club whom the Phantoms believed were responsible for a shooting death of a member of their club.  According to the evidence presented at trial, the plot involved killing the three men and then, during the anticipated subsequent wake at the Hell Lovers’ clubhouse, shooting all Hell Lovers in attendance.  ATF and FBI agents intervened before the Phantoms carried out the plot.


The case was investigated by the ATF and the FBI.  The case was prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.

Through the Detroit One initiative, local, state, and federal law enforcement authorities are maximizing their abilities to identify and arrest those responsible for violence in Detroit.  Since 2013, this collective effort has had led to significant indictments, convictions, and sentences against a number of street gang members responsible for much of the violent crime in Detroit.  These collaboration also has contributed to a decrease in the homicide rate from 386 in 2012 to 300 in 2014, and in the overall violent crime rate.

NURSING COMPANY OWNER SENT TO PRISON FOR $12.6 MILLION ROLE IN FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, July 24, 2015

Owner of Detroit Home Health Care Companies Sentenced to 80 Months in Prison for Role in $12.6 Million Fraud Scheme

A Michigan resident was sentenced to 80 months in prison late yesterday for his leading role in a $12.6 million Medicare fraud and tax fraud scheme.  Eleven other individuals have been convicted in this case.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service-Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.

Mohammed Sadiq, 67, of Oakland County, Michigan, pleaded guilty on March 13, 2015, to one count of health care fraud and one count of filing a false tax return.  In addition to imposing the prison term, U.S. District Judge Denise Page Hood of the Eastern District of Michigan ordered Sadiq to pay $14.1 million in restitution and entered a forfeiture judgment for the same amount, which represents the proceeds traceable to his criminal conduct.

Sadiq owned and directed operations at two home health care companies in Detroit.  In connection with his guilty plea, Sadiq admitted that, working with co-conspirators, he billed Medicare for home health services that were not provided.  Sadiq also admitted to paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill Medicare for services that were not medically necessary or were not provided at all.  Sadiq further admitted that he created fake patient files to fool a Medicare auditor by making it appear as if home health services were provided and medically necessary.  Medicare paid $12.6 million for these services.

In connection with his guilty plea, Sadiq also admitted that he received proceeds of the fraud through bank accounts that he controlled, that he withdrew substantial sums for his personal use and that he failed to report these amounts on his individual federal income tax return in 2008.  In total, Sadiq admitted that he owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.

This case was investigated by the FBI, HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan.  The case is being prosecuted by Trial Attorneys William Kanellis, Christopher Cestaro, Brooke Harper and Elizabeth Young of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

OWNER HEALTH CARE COMPANIES PLEADS GUILTY FOR ROLE IN $12.6 MEDICARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, March 13, 2015

Owner of Detroit Home Health Care Companies Pleads Guilty to $12.6 Million Fraud Scheme

The owner of two home health care companies pleaded guilty to Medicare fraud and tax fraud charges in connection with his role in a scheme to fraudulently bill Medicare for $12.6 million in home health services that were not provided or were obtained through illegal kickbacks.  Ten other individuals have been convicted at trial or pleaded guilty in this case.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.

Mohammed Sadiq, 67, of Oakland County, Michigan, pleaded guilty today before U.S. District Judge Denise Page Hood of the Eastern District of Michigan to one count of health care fraud and one count of filing a false tax return.  A sentencing hearing is scheduled for June 18, 2015.

According to admissions in his plea agreement, Sadiq owned and directed operations at two home health care companies in Detroit.  Sadiq admitted that, working with co-conspirators, he created and operated the companies for the purpose of billing Medicare for home health services that he knew were not provided.  Sadiq also admitted to paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill Medicare for services that were not medically necessary or were not provided at all.

Sadiq further admitted that he created fake patient files to fool a Medicare auditor and make it appear as though home health services were provided and medically necessary.

Sadiq admitted that, as a result of the scheme, he received $12.6 million from Medicare.

Also according to Sadiq, he received proceeds of the fraud through bank accounts that he controlled, withdrew substantial sums for his personal use and failed to report these proceeds on his individual federal income tax return in 2008.  In total, Sadiq admitted that he currently owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.

This case was investigated by the FBI, HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan.  The case is being prosecuted by Trial Attorneys William Kanellis, Christopher Cestaro, Brooke Harper and Elizabeth Young of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

DETROIT GANG LEADER TO SPEND 346 MONTHS IN PRISON FOR ROLE IN ARMED ROBBERY OF A LITTLE CAESARS PIZZA RESTAURANT

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, January 13, 2015
Detroit Gang Leader Sentenced to 346 Months in Prison for Planning Armed Robbery

A leader of a street gang that operated on the east side of Detroit was sentenced to 346 months in prison today for aiding and abetting an armed robbery of a Little Caesars pizza restaurant, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Steven Bogdalek of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Detroit.

Christopher LaJuan Tibbs, 38, of Detroit, was convicted on Aug. 29, 2014, of aiding and abetting an armed robbery after a three-day trial before U.S. District Judge Bernard A. Friedman of the Eastern District of Michigan.

The evidence at trial established that Tibbs, also known as “Chief Fatah,” was the leader of the Michigan branch of the Mafia Insane Vice Lords, a violent street gang that operated primarily on the east side of Detroit.  The Mafia Insane Vice Lords was a local faction of the national Vice Lord gang that originated in Chicago.  The evidence at trial further showed that, during his leadership of the Mafia Insane Vice Lords, Tibbs recruited and used young adults and children to commit crimes for the gang, and ordered the murder of a witness in connection with this case.

The evidence at trial showed that Tibbs helped plan an armed robbery of a Little Caesars restaurant in Redford, Michigan, in September 2013.  Tibbs “blessed” it as a mission for the gang, and sent four subordinate members to commit the crime.  As part of the planning for the robbery, Tibbs instructed the robbers to disable the cameras and phones in the Little Caesars.  Tibbs also told the robbers what to wear, had them diagram the Little Caesars, and instructed them how to use the gun during the robbery.  During the robbery, one of the robbers brandished a gun and forced the employees, including a pregnant woman, inside the store, where the robbers tore down the surveillance cameras.  At the robbers’ direction, the employees disabled the alarm and opened the safe.  Although he was not present for the robbery itself, Tibbs took a majority of the proceeds, some of which were spent on the gang.

This case marked the first time that the federal criminal street gang enhancement was charged in the Eastern District of Michigan.  Because the jury found that Tibbs committed the crime to advance the criminal activities of his gang, the maximum penalty for aiding and abetting the robbery was increased.

The case was investigated by the ATF, with assistance from the Redford Police Department, Detroit Police Department, and Chicago Police Department.  The case was prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Louis Gabel of the Eastern District of Michigan.