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Home Health Agency Owner Pleads Guilty in Connection with Detroit Fraud Scheme
Date:2/17/2010

tional therapy. Shahab admitted that a large number of the beneficiaries were not homebound nor did they need any physical therapy services.

Shahab also admitted to securing physician referrals for medically unnecessary home health services through the payment of kickbacks to physicians or individuals associated with physicians. Shahab employed several physical therapists and physical therapy assistants to sign medical documentation necessary to begin billing for home health care services, including initial payments and payments for each visit to a Medicare beneficiary. Shahab admitted that he knew the physical therapists and physical therapy assistants were not actually conducting a large majority of the visits or treating a large majority of the patients. Shahab admitted to billing and receiving payment from Medicare for the services not rendered or medically unnecessary services.

Between approximately August 2007 and October 2009, Shahab and his co-conspirators at Patient Choice and All American submitted approximately $10,856,130 in claims to the Medicare program for physical and occupational therapy services that were never rendered or were medically unnecessary.

This case was prosecuted by Senior Trial Attorney John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division's Fraud Section. The case was investigated by the FBI and HHS-OIG. 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 their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 500 individuals who collectively have falsely billed the Medicare program for m
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SOURCE U.S. Department of Justice
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