Detroit-Area Home Health Care Agency Owner Sentenced to 30 Years in Prison for $33 Million Medicare

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https://www.justice.gov/opa/pr/detroit-area-home-health-care-agency-owner-sentenced-30-years-prison-33-million-medicare

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Friday, October 28, 2016

Detroit-Area Home Health Care Agency Owner Sentenced to 30 Years in Prison for $33 Million Medicare Fraud Scheme

The owner of several Detroit home health care companies was sentenced today to 360 months in prison for his role in a Medicare fraud scheme that caused approximately $33 million in losses.
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Zafar Mehmood, 50, of Ypsilanti, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered Mehmood to pay $40,488,106.98 in restitution. Forfeiture will be determined at a hearing on Nov. 7, 2016. On July 27, 2015, Mehmood was convicted of one count of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of conspiracy to commit money laundering, two counts of money laundering and two counts of obstruction of justice.

According to evidence presented at trial, from 2006 through 2011, Mehmood participated in a scheme in which he obtained patients by paying cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with Mehmood’s companies: Access Care Home Care Inc., Patient Care Home Care Inc., Hands On Healing Home Care Inc. and All State Home Care Inc. The evidence also showed that he paid kickbacks to physicians to refer patients to the companies for unnecessary home health care services.

In addition, trial evidence showed that Mehmood and his co-conspirators falsified records to make it appear as if the patients qualified for and received the services for which Medicare paid over $33 million during the course of the conspiracy. Mehmood used a co-conspirator to launder the proceeds of the fraud through shell companies under Mehmood’s control, according to trial evidence.
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