Hassan, Co-Owner of Detroit-Area Physical Therapy Company Sentenced to 48 Months for Medicare Fraud Scheme

WASHINGTON—The co-owner of a Detroit-area physical therapy company was sentenced today to 48 months in prison for her leading role in a more than $1.9 million Medicare fraud scheme, announced the Department of Justice, the FBI, and the Department of Health and Human Services (HHS).

Fatima Hassan, 44, was sentenced by U.S. District Judge Avern Cohn in the Eastern District of Michigan. In addition to her prison term, Hassan was sentenced to three years of supervised release and ordered to pay $855,484 in restitution.

Hassan pleaded guilty on September 15, 2011 to one count of conspiracy to commit health care fraud. According to the plea documents, in 2005, Hassan incorporated a company known as Jos Campau Physical Therapy, which she owned with a co-defendant. Jos Campau Physical Therapy did not have a Medicare provider number and was not entitled to bill Medicare for therapy services.

According to court documents, Hassan paid kickbacks to recruiters who obtained Medicare beneficiary information and signatures needed to create fictitious physical and occupational therapy files. The Medicare beneficiaries pre-signed forms and visit sheets that were later falsified to indicate that they received therapy services that were never provided.

Hassan and the co-owner of Jos Campau Physical Therapy hired and paid an occupational therapist and an uncertified occupational therapy assistant to falsify medical files. The occupational therapist created patient evaluation forms for beneficiaries whom she had never met, seen, or evaluated. The uncertified therapy assistant fabricated and signed patient notes for occupational therapy visits. The uncertified therapy assistant did not provide the services reflected in the fictitious patient notes. Additionally, Hassan’s co-owner, a physical therapist, falsified patient evaluation forms and fictitious patient notes for physical therapy services that were never rendered.

Hassan and the co-owner of Jos Campau Physical Therapy sold the fictitious physical and occupational therapy files to multiple fraudulent therapy companies that had obtained Medicare provider numbers. Those companies billed the fictitious files created by Jos Campau Physical Therapy to Medicare and paid kickbacks to Jos Campau Physical Therapy based on these billings. Hassan and her co-owner split the profits from the sale of the falsified files.

Hassan admitted that, between approximately June 2005 and May 2007, she and her co-conspirators at Jos Campau Physical Therapy submitted or caused the submission of approximately $1.9 million in fraudulent claims to the Medicare program for physical and occupational therapy services that were never rendered.

Hassan’s co-owner, Victor Jayasundera, pleaded guilty on January 18, 2012 for his role in the scheme and is scheduled to be sentenced on May 31, 2012.

Tariq Mahmud, the owner of a Medicare provider company that bought and billed Jos Campau Physical Therapy’s fake files, was convicted at trial on February 2, 2012 for his role in the scheme and is scheduled to be sentenced on June 11, 2012.

Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh, III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.

This case was prosecuted by Trial Attorney Catherine K. Dick and Assistant Chief Benjamin D. Singer of the Criminal Division’s Fraud Section, with assistance from Trial Attorney Niall M. O’Donnell. It was investigated by the FBI and HHS-OIG and 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, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,330 individuals who collectively have falsely billed the Medicare program for more than $4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

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The exact same thing happens in child welfare.  The only difference is they will never be caught because the State Medicaid Fraud Control Unit does nothing.

Detroit-Area Physician Convicted In $6.7 Million
Medicare Fraud Scheme

FOR IMMEDIATE RELEASE

May 11, 2012

A federal jury sitting in Detroit, Michigan, convicted a Detroit area physician for his role in a $6.7 million Medicare Fraud scheme, the Department of Justice, the FBI, and the Department of Health and Human Services (HHS) announced today..


Jonathan Agbebiyi, 62, of Sterling Heights, Michigan, was convicted of one count of conspiracy to commit health care fraud, and six counts of health care fraud. Agbebiyi was a staff physician at three clinics which operated in Livonia, Michigan, between 2007 and 2010: Blessed Medical Clinic, Alpha and Omega Medical Clinic, and Manuel Medical Clinic.

According to the evidence presented during the one week trial before United States District Judge Arthur Tarnow, Jonathan Agbebiyi, an obstetrician/gynecologist, joined a conspiracy to bill Medicare for medically unnecessary neurological tests. Some of the tests involved sending an electrical current through the arms and legs of the patients. Clinic employees, who lacked any meaningful training, administered the diagnostic tests. The patients never received any follow up treatment by neurologists.

Evidence at trial showed that the patients were not referred to the clinics by their primary care physicians, or for any other legitimate purpose, but rather were recruited with prescriptions for controlled substances, cash payments, and fast food. The three clinics then billed the Medicare program for various diagnostic tests that were medically unnecessary. 

United States Attorney Barbara L. McQuade stated, "This doctor exposed patients to neurological testing solely to generate money for himself at the expense of the Medicare program. We are grateful for the hard work that uncovered this betrayal of medical ethics and theft of taxpayer funds."

Including today's guilty verdicts, 9 individuals involved with the three clinics have been convicted for their roles in the scheme.

A sentencing date for Agbebiyi has been set for August 13, 2012. Each count of conspiracy to commit health care fraud and health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine.

Today's verdicts were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI's Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General's (OIG) Chicago Regional Office.

This case was prosecuted by Assistant U.S. Attorneys Frances Lee Carlson and Philip A. Ross of the Eastern District of Michigan, with assistance from Assistant Chief Gejaa T. Gobena of the Criminal Division's Fraud Section. The case was investigated by the FBI and HHS-OIG, and 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.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

Since their inception in March 2007, strike force operations in nine locations have charged more than 1,330 defendants who collectively have falsely billed the Medicare program for more than $4 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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Robert Davis charged with stealing from Highland Park school district

A file photo of Robert Davis, 30 of Highland Park. / PATRICIA BECK/Detroit Free PressA Highland Park school board member, who has brought Open Meetings Act lawsuits against the state's financial review process for Detroit, was indicted today on charges he ran a phony invoice scheme that put thousands of dollars into his own pocket, according to the U.S. Attorneys office.

Robert Davis, who was indicted on charges of federal program theft, faces up to 10 years in prison if convicted.

According to the indictment, between 2004 and 2010, Davis pocketed more than $125,000 from the Highland Park School District through two schemes in which he used cover companies to submit fake invoices to the school district for payment.

One of the schemes involved submitting false invoices for more than $380,000 for advertising on behalf of the school district, the indictment said. The other scheme involved invoices in excess of $49,000 for services and expenses relating to a Saturday educational program for district students.

In both schemes, the indictment said, Davis hid his involvement with the companies, whose names appeared on the ionvoices. He also concealed the fact that he took a substantial portion of the payments for his own use, the indictment said.

Davis declined comment pending a press conference this evening.

Attorney Ben Gonek, who represented Highland Park school board member Debra Humphrey in suit against Davis, said the indictment "is long overdue."

"It's refreshing when the government goes after such alleged corruption," he said.

"Stealing from children is bad," Gonek said. "And it's especially so when it's from a school district that's almost bankrupt."

He also noted that Davis fought a state intervention that he said could have uncovered the irregularities.

Davis’s attorney Carl Marlinga said that his client “strongly asserts his innocence. And he looks forward to clearing his name.”

"It is a misfortune that individuals are comfortable with stealing from the children of this city. We, as citizens, must not become comfortable or tolerate this greedy behavior," said Erick Martinez, special agent in charge of the Internal Revenue Service.

U.S. Attorney Barbara McQuade warned that public corruption remains a high priority in her office.

"We are committed to uncovering all forms of public corruption, but stealing from the public is especially egregious when the victims are school children," McQuade said.

Added Detroit's FBI chief Andrew Arena, "Crimes against our children such as these are not only despicable but also a drain on the entire school system. This indictment should serve as a strong reminder we will vigorously pursue anyone who uses school funds as their personal ATM."

The case was investigated by the FBI-led Public Corruption Task Force and the IRS.

Today's indictment comes one year after the Free Press ran an in-depth article about Davis's ties to a controversial $400,000 radio ad campaign that was aimed at attracting students to the struggling Highland Park School district.

• Highland Park schools ad campaign probed (Adobe PDF)

The company that received the nearly $400,000 was Zenoco, a Macomb-County start-up company that was supposed to oversee the promotional advertising campaign.

But Zenoco, the Free Press reported, had no formal contract during its four-year run with Highland Park schools. And its services were never formally approved by the school board.

Yet under that setup, the distressed Highland Park Public Schools wrote nearly $400,000 in checks from 2007 to 2010 to Zenoco.

At the time, the district's attorney and other officials wondered what they got for their money.

Records reviewed by the Free Press showed that Davis – who at the time was a former school board president -- recommended Zenoco for the business, which was handled outside of normal contracting and review processes.

George Butler III, the district's lawyer, said school officials found no evidence that Zenoco developed the ad campaign as promised.

Butler ended up calling for a criminal investigation by the state attorney general. The FBI jumped in and raided Davis' home in search of financial records and information about Zenoco and its owner, court records show.

In August 2010, Davis agreed to repay $4,500 to the Highland Park School District as part of a settlement in Wayne County Circuit Court for submitting an inaccurate court judgment for legal fees. The settlement was announced before Wayne County Circuit Judge Robert Colombo Jr., who wanted to know how two conflicting court orders wound up on the record in a Freedom of Information lawsuit filed by Davis against the school board.

That case was dismissed in November 2009. One of the orders dismissed the case without providing fees; the other dismissed the case providing fees and costs of $4,500. Both documents were signed by Davis on behalf of his attorney and an attorney for the district, and had Colombo's stamped signature.

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Michigan DHS Neglected Detroit DHS, Rights To Be Terminated

I just adore Madame Corrigan (spoken in a high British accent), the arrogance of indifference, the indolence of immunity, the dismissive concerns that it was her Department of Human Services and her legislating from the bench that allowed  the malfeasance and misfeasance in Detroit Department of Human Services in the first place.

See, Michigan DHS is the recipient of federal grants whereby there are certain mandated guidelines in order to continue eligibility of its terms..uh...like grant management of its subrecipients.  One of its subrecipients was Detroit DHS.

If the Madame does not make it look like her Department has been in federal compliance of its funding, then Michigan is going to loose a whole lot of money, the same way the feds do not want to grant Detroit any more Head Start money.

Michigan DHS failed to provide for the necessary needs of the City of Detroit DHS.  Those necessary needs were financial guidance and regulartory oversight as a subrecipient, pursuant to OMB Cir A-133.  As a result the City of Detroit has failed to financially thrive.  Reasonable efforts have been made to prevent removal of Federal Financial Participation Rates of certain grants in HHS OIG DAB rulings.  It is in the best interest of the City of Detroit to recommend termination of the public right to corporate oversight of the State of Michigan and place the City of Detroit into federal receivership.

Michigan DHS is just as jacked up, if not more, as Detroit DHS.  

Talk about the pot calling the kettle black, Madame Corrigan.  Andrew Arena needs to expand the scope of the task force to include your history of paper shredding and white out.

CORRIGAN DEMANDS COUNCIL CEDE CONTROL OF CITY DHS

Posted on 03/06/2012 by Diane Bukowski

Maura Corrigan demands City Council hand over Detroit Department of Human Services/ March 2, 2012

 State illegally withholds $8 million meanwhile, causing thousands to go without services; no documentation for charges of mismanagement 

State wants Wayne Metro CAA to take over; WMCAA board meeting Thursday, March 15 at 2 p.m. at 2121 Biddle, #102 Wyandotte, MI

By Diane Bukowski 

March 3, 2012 

DETROIT – Maura Corrigan, who cut 15,000 Michigan families off public assistance and then recently called most of them part of “the underground economy” and “gamers” in published remarks, came to Detroit March 2 to demand that the City Council voluntarily cede control of the Detroit Human Services Department. 

Corrigan said she wants the Wyandotte-based Wayne-Metropolitan Community Action Agency (WMCAA), run by an 18-member board dominated by wealthy suburban and corporate representatives from areas like Grosse Ile, to take over after DHS is de-designated as Detroit’s “community action agency.” 

Her reason? 

“Our goal is that Detroit residents receive every single cent of government assistance that is due to them,” Corrigan said. Corrigan is head of the state Department of Human Services, appointed by Gov. Rick Snyder. She was previously a right-wing State Supreme Court justice. 

Corrigan said the state is withholding nearly $8 million in federal community services block grants from the city’s DHS, and will not renew the contract for the city’s $17 million home weatherization program March 31. After not being paid for several weeks, contractual weatherization workers were laid off Dec. 14, leaving hundreds of Detroiters, mostly seniors, with half-completed work on their homes. 

The rest of the department is essentially shut down, according to Cecily McClellan, Vice-President of the Association of Professional and Technical Employees. No funds have come in from the state since Oct. 1, 2011. She said there are no funds and personnel left for the department to distribute emergency food resources, pay back due energy bills, prevent evictions, and repair houses using mainly small Black contractors, who are also not being paid. 

“The funds are already suspended,” Councilwoman JoAnn Watson told Corrigan. “Our people are not able to get service, and because they were cut off welfare by the State, the only place they can go is the city, and now they cannot get service there either because the state is illegally withholding the funds. These grants(WCMAA board meets Thurs. March 15 at       were intended for the people of          2 p.m. at 2121 Biddle, #102 Wyandotte, MI.)  Detroit to have services and employment.” 

Chris Griffiths demands the City Council stand up to Corrigan, while Bertram Marks and APTE V-P Cecilyn McClellan listen

Corrigan said a joint investigation by state and federal inspectors along with the FBI is going on to turn up “potentially illegal misuse of funds.” She threatened that if the Council did not agree to voluntarily give up control of DHS, “we will move forward with adversarial proceedings to de-certify DHS as a community action agency.” 

During her exchange with City Council members, Corrigan refused to address them by their titles, for example calling Councilwoman JoAnn Watson “Ms. Watson.” She snubbed city residents who packed the chamber in support of the city’s DHS by walking out before public comment. 

Councilwoman JoAnn Watson tells Corrigan the state cut-off of funds to DHS is illegal.

“Those folks who just left think we are stupid,” said one speaker afterwards. “I’m not stupid, I have two college degrees and studied law. Nobody in this room is stupid. But she said the people of Detroit don’t understand. She threatened you [the Council] with no basis. She even said she lost the paperwork involved. Do not give away DHS simply because they walked in here and asked you to.” 

During public comment, Chris Griffiths stood to declare, “I speak for the people of Detroit in asking you to disapprove the transfer of funds belonging to us. The people of Detroit need jobs and we will lose those jobs if this happens. Corrupt individuals from the state have come in under the pretense of helping us but they are robbing us.” 

Angeles Hunt of DHS advisory board tells Council to stand up for DHS

Angeles Hunt, who is a City of Detroit retiree and now serves as an elected member of the Human Services Commission, said, “I want to know how this can be done without even any notification to us. The City Council must fight for DHS.” 

Several building contractors testified that they are owed millions in funds for work they have already done in the weatherization program. 

In an aside, Councilman Kwame Kenyatta said regarding Mayor Dave Bing, “We have one administration locked up, maybe we need the current one locked up too.”

Bing has already agreed to a voluntary de-designation of DHS in an exchange of letters with the governor’s office, although he is not authorized to do so without City Council consent according to law.  He did not bother to come himself or send representatives to the Council hearing, enraging many Council members as well as the public. 

Only Council President Pro-Tem Gary Brown openly supported voluntary de-designation. 

“I wholeheartedly believe that the city ought to get out of the business of things it doesn’t do well,” Brown said. “I support a Detroit-based Detroit-headquartered entity being designated.” 

Corrigan however countered that  a “community action agency” has to comply with specific requirements, and that  since Wayne Metro is already a CAA, it can continue services without fund cut-offs while Requests for Proposals for private contracts are submitted. She said the City of Detroit would not be eligible to submit such a proposal.

“Last spring, we became aware of severe problems with DHS,” Corrigan said. “They have fallen far short of what is required by federal law even though the state provided technical assistance. . . there is strong evidence of years of mismanagement, misuse of funds, and criminal activity.” 

Standing room only crowd packed Council chambers 3 2 12

Corrigan claimed “50 to 74 percent of the money” allocated to DHS went to residents who were ineligible.  She claimed the department was double-billing the state DHS and Department of Education for various services. She did not produce evidence of this, claiming it was currently under wraps due to the criminal investigation. 

Corrigan claimed she had provided the City Council with numerous notices of illegal DHS practices, but Councilman Kwame Kenyatta, who heads the Community Services Committee, said his committee has not received any such notices. 

Councilman Gary Brown speaks in favor of de-designation of DHS

VOD obtained a package of reports on the city’s DHS by the Bureau of Community Action and Opportunity, the subdivision of the state’s DHS which has the ONLY authority to recommend de-designation. The reports are dated in August, 2010, June, 2011, and December, 2011. They completely contradict Corrigan’s allegations. (To view entire package including state audits of DHS, federal and state regulations for de-designation of a CAA, and exchange of letters between Mayor Bing and the Snyder administration, click on https://sendnow.acrobat.com/?i=WCiYm2hHKOFvMQAhdE0EYg . This download is only available for 7 days from date of this post, so it would be helpful to print it out. Document was too large for attachment to this post. If you miss the deadline, email VODeditor@hotmail.com and we will send you a copy.)

They are essentially routine reports on audits conducted of various divisions of the city’s DHS, which cite minor problems such as workers forgetting to include the quarterly DHS supplement for SSI payments in household income. That supplement is $41.00. The reports say clearly that the households would be eligible for service even with the funds included.  In some cases, the Bureau noted that DHS workers had incorrectly cited sources of income that should not have been included, but still allowed services. 

More Detroiters demand Council stand firm against state attack on Detroit DHS

In general, the Bureau says that all discrepancies they pointed out have been resolved, except for three findings, one of which was not the fault of DHS. 

 That was that the city’s budget and finance departments used DHS funds to pay $384,175 in interest on debt repayments for the $1.5 billion pension obligation certificate (POC) borrowing during the Kilpatrick administration in 2005. The state asked for reimbursement from the department. 

The Bureau also found that ONE two-member household was not eligible for weatherization assistance because its yearly income of $8,074.00 exceeded the poverty limit of $7,404. 

Councilwoman Brenda Jones opposed the voluntary de-designation.

The state also found that the department did not do criminal checks on a handful of contractual workers and asked that they do so. Nowhere in the reports does the Bureau recommend that the city’s DHS be de-designated as a community action agency.

(See box with requirements for de-designation, none of which Corrigan has followed. Also note box describing WMCAA board of directors, in particular its CEO Louis Piszker, who runs a for-profit agency out of WMCAA’s Ecorse office, mostly likely a complete conflict of interest. Perhaps Corrigan needs to be investigating WMCAA instead.)

Members of Young Detroit Builders who came to 2010 City Council hearing; three of them are now in college.

Since this story was published, VOD has found that funds the Detroit DHS provides to Young Detroit Builders (YDB) have also been cut. YDB is an educational and training program that helps young adults ages 18-24 earn their GED’s while getting hands-on construction training, doing community service and earning a living allowance. They receive counseling and mentoring as well. Many graduates of the program have gone on to college, including several of those in the picture at the right, who testified at a City Council hearing in 2010.

Officials said YDB funds administered by the city DHS are still owed for the months of August and September, 2011, and that no funds have been received from that grant since then. As a result, many of the workers who run the program have not been paid for weeks, and some have been forced to leave. YDB representatives who were present at the March 2 hearing were on the list to speak, but the hearing ended before they were allowed to do so. Their website is at www.youngdetroitbuilders.org .

Shenetta Coleman, former director of Detroit DHS (Photo from Facebook)

For background information on how Mayor Bing and the daily media conspired to dismantle Detroit DHS over the last several years, read the whistleblower lawsuit filed by Shenetta Coleman, former director of DHS, at Shenetta Coleman lawsuit best, Coleman alleges she was fired by Bing because she objected to the usage of DHS federal grant funds for renovation of the Herman Kiefer Health Complex in order to combine DHS with the Detroit Department of Health, for payment on the city’s POC debt, and to pay staff who did not work for DHS.