Terrence Hicks, Muhammed Al Mahdi, John Saunders, Conspiracy to Commit Health Care Fraud, Michigan 2009

Three Detroit-Area Residents Plead Guilty to $4.2M Medicare Scam

Washington – In a shocking case of health care fraud, three Detroit-area residents have pleaded guilty to bilking Medicare of $4.2 million. Terrence Hicks, 42, Muhammed Al Mahdi, 63, and John Saunders, 70, all of Detroit, entered their pleas in U.S. District Court in Detroit this week.

According to court documents, Hicks, Al Mahdi, and Saunders were part of a conspiracy to defraud Medicare, operating out of a Southfield, Mich., clinic called Sacred Hope Center. The clinic purported to specialize in providing injection and infusion therapy services to Medicare patients.

Specifically, Hicks admitted that beginning in September 2006, he began working as a patient recruiter and driver at Sacred Hope. Hicks admitted to being aware that the purpose of the clinic was to defraud the Medicare program, not to provide legitimate health care to patients.

Medicare beneficiaries were not referred to Sacred Hope by their primary care physicians, or for any other legitimate medical purpose, but rather were recruited to come to the clinic through the payment of kickbacks. Hicks, along with co-conspirator Wayne Smith, who pleaded guilty on Dec. 10, 2009, was responsible for driving into Detroit neighborhoods and recruiting Medicare beneficiaries by offering them cash and prescriptions for controlled substances.

In their pleas, Al Mahdi and Saunders admitted that they were Medicare beneficiaries who permitted their Medicare numbers to be used for fraudulent billings at Sacred Hope. Specifically, they admitted being driven by Hicks and Smith to Sacred Hope, and signing forms indicating that they had received injection and/or infusion therapy. They admitted that in return for signing these forms, they were paid cash kickbacks of approximately $50 per visit.

The case is being prosecuted by Senior Trial Attorney John K. Neal and Trial Attorney Benjamin D. Singer of the Criminal Division's Fraud Section and by Special Assistant U.S. Attorney Thomas W.

Defendant Information:

Terrence Hicks, 42, of Jackson, Mich., pleaded guilty to one count of conspiracy to commit health care fraud on [Unknown date]. Hicks admitted to being aware that the purpose of the clinic was to defraud the Medicare program, not to provide legitimate health care to patients.

Muhammed Al Mahdi, 63, of Detroit, pleaded guilty on Dec. 15, 2009, to one count of conspiracy to commit health care fraud. Al Mahdi admitted being driven by Hicks and Smith to Sacred Hope, and signing forms indicating that he had received injection and/or infusion therapy.

John Saunders, 70, of Detroit, pleaded guilty to one count of conspiracy to commit health care fraud on [Unknown date]. Saunders admitted being driven by Hicks and Smith to Sacred Hope, and signing forms indicating that he had received injection and/or infusion therapy.

Outcome:

The outcome of the case is currently unknown.

Criminal Charges:

The defendants pleaded guilty to one count of conspiracy to commit health care fraud.

City and State:

The case took place in Detroit, Michigan.

Exact Date:

The exact date of the crime is unknown.

Sentence or Outcome:

The outcome of the case is currently unknown.

Dollar Amounts:

The defendants bilked Medicare of $4.2 million.

Source: https://www.justice.gov/archives/opa/pr/three-detroit-area-residents-plead-guilty-health-care-fraud