Home health company owner Mohammed Sadiq gets 80 months in prison, will pay $14.1 million over fraud
Sadiq created fake patient files to fool a Medicare auditor by making it appear as if home health services were provided and medically necessary.
A Detroit home health provider was sentenced to 80 months in prison Friday for his leading role in a $12.6 million Medicare fraud and tax evasion scheme.
In addition to imposing the prison term, Mohammed Sadiq, 67, of Oakland County, Michigan was ordered to pay $14.1 million in restitution, according to the Department of Justice.
Sadiq owned and directed operations at two home healthcare companies in Detroit. He admitted working with co-conspirators to bill 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.
[Also: Home health companies, aides lead Medicaid fraud recoveries, convictions]
Sadiq also 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, according to the Justice Department.
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.
[Also: Running list of notable 2015 healthcare frauds]
In total, Sadiq admitted that he owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.
Sadiq had pleaded guilty in March to one count of healthcare fraud and one count of filing a false tax return.
Eleven other individuals have also been convicted in this case, authorities said.
Twitter: @SusanMorseHFN
