CHARLOTTE, N.C. – Aljihad Shabazz, 44, of Kernersville, N.C., has been indicted for his alleged involvement in a health care fraud scheme that defrauded the North Carolina Medicaid Program (Medicaid) of more than $4.7 million.
The 10-count indictment charges Shabazz with health care fraud conspiracy, health care fraud, money laundering conspiracy, and money laundering.
Shabazz allegedly owned and operated Reign & Inspirations, LLC (R&I), a clinic that purportedly provided outpatient behavioral services in Greensboro and surrounding areas.
According to allegations contained in the indictment, between 2017 and 2020, Shabazz allegedly conspired with other individuals to carry out an extensive health care fraud scheme involving the fraudulent submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries.
Shabazz allegedly obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I.
The indictment also alleges that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals, among other things.
“Health care fraud hurts individuals who rely on government-funded programs to cover legitimate patient care needs. Working with our law enforcement partners we will investigate and hold accountable health care fraud cheats and safeguard taxpayer dollars,” said U.S. Attorney King.
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Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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