DETROIT, MI – 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.
Mohammed Sadiq, 67-years-old, of Oakland County, Michigan, pleaded guilty on Friday, March 13th, 2015, 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 18th, 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.