Detroit Clinic Owner and Patient Recruiter Plead Guilty in $15 Million Fr... (linic Xpress Center. As at Sacred Hope b...)

Detroit Clinic Owner and Patient Recruiter Plead Guilty in $15 Million Fraud Scheme

Date:8/18/2009

linic, Xpress Center. As at Sacred Hope, both defendants admitted they were fully aware that the DMRC and Xpress Center routinely billed the Medicare program for services that were medically unnecessary and, in many instances, never provided. As at Sacred Hope, both defendants admitted that the purpose of the DMRC and Xpress Center was not to provide legitimate health care to patients, but rather to defraud the Medicare program.

Between approximately March 2006 and March 2007, the two defendants admitted to causing the submission of approximately $15,311,605 in false and fraudulent claims to Medicare for services supposedly provided at Sacred Hope, DMRC and Xpress Center. Based on the fraudulent claims, approximately $10,765,325 was paid.

The case is being prosecuted by Trial Attorneys John K. Neal and Benjamin D. Singer of the Criminal Division's Fraud Section and by Special Assistant U.S. Attorney Thomas W. Beimers of the Eastern District of Michigan. The FBI and the HHS Office of Inspector General (HHS-OIG) conducted the investigation. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Eastern District of Michigan.

Since the inception of Strike Force operations in March 2007 -- Miami (Phase One), Los Angeles (Phase Two), Detroit (Phase Three) and Houston (Phase Four) -- the Strike Force has obtained indictments of more than 293 individuals and organizations that collectively have billed the Medicare program for more than $680 million. In addition, HHS's Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Each of the Strike Force teams across the separate phases are led by a federal prosecutor from the Criminal Division's Fraud Section or the U.S. Attorney's O
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