The owner, Zafar Mehmood, was sentenced to prison by a U.S. District Judge for the Eastern District of Michigan. He was also ordered to pay $40,488,106 in restitution.
According to evidence presented at trial, Mr. Mehmood allegedly paid cash kickbacks to recruiters to obtain patients. The recruiters would then pay patients to influence them to sign up for home health services with one of Mr. Mehmood’s Detroit-based companies, including Access Care Home Care, Patient Care Home Care, Hands on Healing Home Care and All State Home Care. Mr. Mehmood also allegedly paid physicians to refer patients to the businesses for unnecessary services.
Trial evidence showed Mr. Mehmood and his co-conspirators falsified records to make it appear as if patients qualified and received the services Medicare paid for, and laundered the proceeds through a number of shell companies under Mr. Mehmood’s control.
According to DOJ officials, Mr. Mehmood also reportedly stole incriminating documents during pretrial release that police had seized while executing search warrants at his companies. Police later recovered the missing documents in Mr. Mehmood’s jail cell.
Mr. Mehmood was convicted of one count of conspiracy to commit healthcare fraud, four counts of healthcare fraud, one count of conspiracy to pay and receive healthcare kickbacks, one count of conspiracy to commit money laundering, two counts of money laundering and two counts of obstruction of justice in July 2015. Forfeiture will be determined at a hearing Nov. 7. Mr. Mehmood’s co-defendant, Badar Ahmadani, will also be sentenced on Nov. 7.
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