Hassan Akhtar, Healthcare Fraud, Michigan 2010

In a devastating blow to the Medicare system, Hassan Akhtar, a 26-year-old Detroit resident, has pleaded guilty to conspiring to commit healthcare fraud. Akhtar, the former manager of All American Home Care Inc. in Oak Park, Michigan, admitted to orchestrating a massive scheme that bilked the Medicare program out of approximately $4.65 million.

According to court documents, Akhtar began working for co-conspirator Muhammad Shahab in April 2008. Shahab, who also pleaded guilty to one count of conspiracy to commit health care fraud, had asked Akhtar to assist in setting up and operating a new home health agency. Akhtar agreed to the arrangement and went on to become the office administrator and day-to-day operations manager of All American Home Care Inc.

In a brazen display of greed, Akhtar and his co-conspirators created fictitious therapy files that appeared to document physical therapy services provided to Medicare beneficiaries. However, these services were never actually rendered, and the files were used to deceive the Medicare program into paying for them. Akhtar also admitted that his co-conspirators paid cash kickbacks and other inducements to Medicare beneficiaries in exchange for their Medicare numbers and signatures on documents falsely indicating that they had received home health services from All American.

Furthermore, Akhtar’s co-conspirators secured physician referrals for home health services through the payment of kickbacks to physicians or individuals associated with physicians. To facilitate the scheme, Akhtar and his co-conspirators employed several physical therapists and physical therapy assistants to sign medical documentation necessary to commence Medicare home health billing processes. However, Akhtar admitted that he knew the physical therapists and physical therapy assistants were not actually conducting a large majority of the visits or treating a large majority of the patients.

Akhtar faces a maximum penalty of 10 years in prison and a $250,000 fine at sentencing, scheduled for January 27, 2011. This case was prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG.

The Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section, brought this case. The strike force is a partnership between the Justice Department, HHS, and other federal and state agencies to combat Medicare and Medicaid fraud. This case highlights the importance of this effort in protecting the integrity of the Medicare program and ensuring that those who seek to exploit it are held accountable for their crimes.

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