North Carolina clinic owner pleads guilty to $4.7M Medicaid fraud scheme

A North Carolina mental health clinic owner pleaded guilty to a $4.7 million Medicaid fraud scheme in which he submitted over 1,500 fraudulent claims to the program. 

According to a June 14 news release from the Justice Department, Aljihad Shabazz owned Reign & Inspirations in Greensboro, N.C., which provided outpatient behavioral health services. 

Mr. Shabazz obtained Medicaid beneficiaries' personal information through community outreach programs, according to the Justice Department. He then used this information to submit more than 1,500 false claims to the program for behavioral health services never provided. Some of the claims added up to more than 24 hours in a day of services provided by Mr. Shabazz's clinic. 

The reimbursements were deposited in bank accounts controlled by Mr. Shabazz. He used the money to pay kickbacks to co-conspirators, in addition to paying for personal expenses. 

Mr. Shabazz faces up to 10 years in prison for healthcare fraud and 20 years for money laundering, according to the news release. 

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