Three Detroit-Area Residents Plead Guilty to Health Care Fraud

Jackson, Mich., resident Terrence Hicks and Detroit residents Muhammed Al Mahdi and John Saunders pleaded guilty in U.S. District Court in the Eastern District of Michigan for their roles in a $4.2 million Medicare fraud scheme, Assistant Attorney General Lanny A. Breuer of the Criminal Division, Acting U.S. Attorney Terrence Berg of the Eastern District of Michigan, Special Agent in Charge Andrew G. Arena of the FBI's Detroit Field Office, and Daniel R. Levinson, Inspector General of the Department of Health and Human Services (HHS) announced recently.

Hicks, 42, and Saunders, 70, pleaded guilty to one count of conspiracy to commit health care fraud before Chief Judge Gerald E. Rosen of the U.S. District Court in Detroit; Al Mahdi, 63, pleaded guilty on Dec. 15, 2009, to the same charge before Chief Judge Rosen. Sacred HopeAll three defendants admitted that they participated in a conspiracy to defraud Medicare, operating out a Southfield, Mich., clinic called Sacred Hope Center (Sacred Hope). The clinic purported to specialize in providing injection and infusion therapy services to Medicare patients.

Specifically, Hicks admitted that beginning in September 2006, he began working as a patient recruiter and driver at Sacred Hope. Sacred Hope was owned by defendant's co-conspirators, Jose Rosario and Daisy Martinez, who pleaded guilty in the same case in August and September 2009, respectively. According to court documents, Sacred Hope routinely billed the Medicare program for medications and services that were medically unnecessary and, in many instances, never provided. Hicks admitted to being aware that the purpose of the clinic was to defraud the Medicare program, not to provide legitimate health care to patients.

According to court documents, Medicare beneficiaries were not referred to Sacred Hope by their primary care physicians, or for any other legitimate medical purpose, but rather were recruited to come to the clinic through the payment of kickbacks. Hicks, along with co-conspirator Wayne Smith, who pleaded guilty on Dec. 10, 2009, was responsible for driving into Detroit neighborhoods and recruiting Medicare beneficiaries by offering them cash and prescriptions for controlled substances.

In exchange for their kickbacks, the Medicare beneficiaries would visit the clinic, typically driven there by Hicks and/or Smith, and sign documents indicating that they had received the services billed to Medicare. Hicks and/or Smith would obtain cash on a daily basis from co-conspirators for the purpose of paying the beneficiaries cash kickbacks. Hicks or Smith would then distribute this cash to the Medicare beneficiaries.

In their pleas, Al Mahdi and Saunders admitted that they were Medicare beneficiaries who permitted their Medicare numbers to be used for fraudulent billings at Sacred Hope. Specifically, they admitted being driven by Hicks and Smith to Sacred Hope, and signing forms indicating that they had received injection and/or infusion therapy. They admitted that in return for signing these forms, they were paid cash kickbacks of approximately $50 per visit.

Both defendants admitted that when visiting Sacred Hope, they were repeatedly injected with unknown substances, the purposes of which were never explained to them. Al Mahdi and Saunders were aware that the clinic was making notations in medical charts for medications that were never provided to them. Both Al Mahdi and Saunders admitted that they did not visit Sacred Hope for the purpose of receiving legitimate medical care, rather, they visited Sacred Hope for the sole purpose of receiving kickbacks, and knowingly allowed Medicare to be billed for the services supposedly provided to them there.

Download Center

  • Industrial Premium Library

    Empower your workforce with the manufacturing, industrial maintenance, operations, HSE, compliance, and professional development skills they need to complete their tasks efficiently and safely. Not only will you boost productivity, reliability, skills, and morale but you’ll also onboard faster, and retain your best employees while meeting regulatory standards. Vector Solutions offers over 1,800 award-winning eLearning courses designed to keep your employees safe, transfer knowledge of fundamentals, and develop industry and job-specific skills that reduce downtime, maintenance costs and more.

  • Safety Metrics & Insights Webinar

    EHS professionals have been tackling the subject of how to best measure performance for many years. Lagging indicators like the Total Recordable Incident Rate (TRIR) and Days Away Restricted Transfer Rate (DART) are a good place to start, but you shouldn’t forget about the leading indicators that your workforce does every day to prevent incidents from occurring. Learn about some of the most common KPIs of safety programs and how Vector EHS Management software can be used to track these metrics in this webinar.

  • Risk Matrix Guide

    Understanding the components of a risk matrix will allow you and your organization to manage risk effectively. Download this guide for details on risk matrix calculations including severity, probability, and risk assessment.

  • OSHA Recordkeeping Guide

    In case you missed it, OSHA recently initiated an enforcement program to identify employers who fail to electronically submit Form 300A recordkeeping data to the agency. When it comes to OSHA recordkeeping, there are always questions regarding the requirements and ins and outs. This guide is here to help! We’ll explain reporting, recording, and online reporting requirements in detail.

  • Safety Metrics Guide

    Is your company leveraging its safety data and analytics to maintain a safe workplace? With so much data available, where do you start? This downloadable guide will give you insight on helpful key performance indicators (KPIs) you should track for your safety program

  • Vector Solutions

OH&S Digital Edition

  • OHS Magazine Digital Edition - September 2022

    September 2022

    Featuring:

    • ESG
      EHS Will Guide Future ESG Success for Many Organizations
    • MACHINE GUARDING
      Handling Material Handlers: Training Beyond PIT Requirements
    • EHS SOFTWARE
      The Missing Link with EHS Software
    • HEARING PROTECTION
      Noise Surveys from the Trenches
    View This Issue