A Dearborn Heights business owner pleaded guilty on Apr. 7 to conspiring to commit health care fraud, resulting in $1.9 million in losses to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan, according to United States Attorney Jerome F. Gorgon, Jr.
The case highlights ongoing efforts by federal authorities to address fraudulent billing practices that impact government and private health insurance programs.
Rabih Hamdan, 41, admitted during his plea hearing that he created and operated a scheme involving the submission of false claims for prescription drugs. According to the announcement by Gorgon—joined by Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Jennifer Runyan of the Federal Bureau of Investigation (FBI)—Hamdan’s pharmacy often billed insurers for medications that were either medically unnecessary or not actually dispensed.
In many cases, Hamdan’s pharmacy did not have sufficient inventory but still submitted claims as if drugs had been provided. The medications billed were sometimes never ordered by a physician. Authorities said Hamdan used proceeds from the scheme for personal benefit and also shared them with others involved in the conspiracy.
Over a five-year period, Hamdan and his coconspirators submitted at least $1.9 million in false claims. Sentencing will take place before United States District Judge Matthew F. Leitman after preparation of a presentence report. Hamdan faces up to 10 years in prison, a fine up to $250,000, and three years’ supervised release following any imprisonment term.
The Department of Health and Human Services – Office of Inspector General (HHS-OIG) and FBI investigated the case; Assistant United States Attorney Jason Dorval Norwood is prosecuting.
