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Detroit Clinic Owner and Patient Recruiter Plead Guilty in $15 Million Fraud Scheme
Date:8/18/2009

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In his plea, Jose Rosario also admitted that Medicare beneficiaries were neither referred to Sacred Hope by their primary care physicians, nor for any other legitimate medical purpose, but rather were recruited to come to the clinic through the payment of kickbacks. In exchange for their kickbacks, the Medicare beneficiaries would visit the clinic and sign documents falsely indicating that they had received the services billed to Medicare. According to information contained in the plea documents, kickbacks came in the form of cash and prescriptions for narcotic drugs. Jose Rosario admitted he directed his nephew, co-defendant Arnaldo Rosario, to oversee and facilitate the payment of cash kickbacks to the Medicare beneficiaries. Jose Rosario admitted that he would routinely obtain cash that he would provide to Arnaldo Rosario for the purpose of paying the beneficiaries cash kickbacks.

Arnaldo Rosario admitted that he was responsible for overseeing and facilitating the payment of cash kickbacks to the Medicare beneficiaries at Sacred Hope. According to information contained in his plea documents, Arnaldo Rosario admitted to obtaining cash on a daily basis from his uncle or other co-conspirators to pay the beneficiaries cash kickbacks. After obtaining the cash, Arnaldo Rosario admitted that he would then distribute the money to two co-defendants who were responsible for recruiting and paying the beneficiaries the kickbacks. Arnaldo Rosario admitted to being directed to pay bonuses to the co-defendants if they were able to recruit additional Medicare beneficiaries to come to Sacred Hope.

In addition to the conduct at Sacred Hope, Jose Rosario admitted to being a part owner of Dearborn Medical Rehab Center (DMRC), a Dearborn, Mich., infusion clinic. Arnaldo Rosario admitted to being a patient recruiter at DMRC. In addition, both defendants admitted to playing similar roles at a third Detroit-area infusion c
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SOURCE U.S. Department of Justice
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