Oakland Co. man sentenced for $12.6M Medicare scheme
Detroit — The owner of two health care facilities in Detroit has been sentenced to 6 1/2 years in prison for his role in a $12.6 million Medicare and tax fraud scheme.
On March 13, Oakland County resident Mohammed Sadiq, 67, pleaded guilty to one count each of health care fraud and filing a false tax return. In addition to a sentence of 80 months in prison, Sadiq was also ordered to pay $14.1 million in restitution by U.S. District Judge Denise Page.
The announcement of the sentencing was made Friday morning by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade, Paul Abbate, special agent in charge of the FBI Detroit field office and others.
According to authorities, Sadiq owned and directed operations at two home health care companies in Detroit. As part of his plea arrangement, Sadiq admitted that he, along with others, billed Medicare for services that were not provided.
He also admitted paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill for services that were not medically necessary or were not provided at all.
Sidiq also admitted that he created fake patient files to fool a federal auditor by making it appear as if home health services were provided and medically necessary.
Medicare paid $12.6 for these services.
In connection with his plea, Sadiq also admitted that he received proceeds from the fraud through bank accounts that he controlled and that he withdrew substantial sums for his personal use, failing to report these amounts of federal income tax return for 2008.
In total, Sadiq confirmed that he owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.
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.