MI DOCTOR PLEADS GUILTY FOR ROLE IN MEDICARE FRAUD AND KICKBACK SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, March 23, 2015

Michigan Physician Pleads Guilty for Role in $3.6 Million Medicare Fraud Scheme

A Detroit-area medical doctor who referred Medicare beneficiaries for home health services in exchange for illegal cash kickbacks as part of a $3.6 million home health care fraud scheme pleaded guilty today for his role in the scheme.

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 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.

Kutub Mesiwala, 64, of Bloomfield Hills, Michigan, pleaded guilty before U.S. District Judge George Caram Steeh of the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  A sentencing hearing is set for Oct. 5, 2015.

According to admissions in his plea agreement, Mesiwala referred patients to Detroit-area home health agency Advance Home Health Care Services Inc. (Advance) and other home health care agencies in exchange for cash kickbacks.  Advance’s owner, Amer Ehsan, pleaded guilty on July 24, 2014, to fraudulently billing Medicare for $3.6 million in home health services that were not medically necessary or not provided through Advance.  Ehsan is awaiting sentencing.

Mesiwala admitted that Medicare paid a total of $770,668.31 to Advance and $118,375.81 to other home health care companies for fraudulent claims based on his referrals.

This case is being investigated by the FBI and HHS-OIG, and 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 for the Eastern District of Michigan.  This case is being prosecuted by Trial Attorney Katharine A. Wagner of the Fraud Section.

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.

MICHIGAN MAN PLEADS GUILTY, BELIEVED FILING COMPLETED TAX RETURNS A VIOLATION OF CONSTITUTIONAL RIGHTS

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, January 28, 2013
Michigan Man Pleads Guilty to Tax Charges

Steven Kern of Marine City, Mich., pleaded guilty today before U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan to eight counts of filing false corporate tax returns and eight counts of failing to file his individual tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.

According to filed court documents and court proceedings, Kern operated the Kern Chiropractic Center from Marine City and diverted cash and check payments from the business for his own personal use. The indictment alleges that Kern failed to file individual tax returns for tax years 2003 to 2010, despite earning more $1.2 million in gross income during that time period. According to filed court documents and court proceedings, Kern told IRS-Criminal Investigation Special Agents he believed signing and filing a completed tax return was a violation of his constitutional rights.

Each count of filing a false corporate tax return carries a maximum penalty of three years in prison and a $250,000 fine. Each count of failing to file an individual tax return carries a maximum penalty of twelve months imprisonment and a fine of up to $100,000. Kern is scheduled to be sentenced on April 30, 2013.

The case is being prosecuted by Trial Attorneys Mark McDonald and Jeff Bender of the Justice Department’s Tax Division. The investigation was conducted by IRS Criminal Investigation.