A Missouri-based psychiatrist, Dr. Mohd Azfar Malik, and his associated healthcare entity have been hit with a $501,556 civil settlement over their involvement in a fraudulent billing scheme aimed at federal health care programs, according to a recent announcement by Acting U.S. Attorney Matthew T. Drake. The allegations pointed to Dr. Malik's practices from January 2019 to May 2024, where he was claimed to have submitted false records to Medicare and Missouri Medicaid claiming to have conducted face-to-face psychotherapy sessions.
The details of the settlement include $250,778 in restitution, effectively doubled under the False Claims Act (FCA). According to information obtained by the U.S. Attorney’s Office for the Eastern District of Missouri, despite the substantial payout, the agreement by Dr. Malik does not serve to admit any liability. However, he had previously entered a guilty plea for making false statements in federal health care related matters in April of 2025, where he confessed to submitting claims for services reportedly not rendered in person, particularly when he was outside Missouri or the country.
Dr. Malik, co-owner of Behavioral Health Services, LLC which ran Psych Care Consultants in St. Louis, Missouri, is scheduled for sentencing on August 11 following his guilty plea. This legal repercussion seeks to uphold the justice system's commitment to holding health care providers accountable for such fraudulent activities that threaten the integrity of essential federal programs. "Holding health care professionals accountable for submitting false claims for financial gain is crucial for maintaining public trust and ensuring that critical resources are appropriately utilized," Linda T. Hanley, Special Agent in Charge with the HHS-OIG, echoed this sentiment.
The investigative efforts leading up to the settlement were a coordinated affair involving the U.S. Attorney’s Office for the Eastern District of Missouri, the HHS/OIG Office of Investigations, the Missouri Attorney General’s Medicaid Fraud Control Unit, and the FBI. Their collaboration underscores a determined endeavor to not only seek restitution but to actively maintain and protect the Medicare and Medicaid healthcare systems against exploitation. "HHS-OIG, the U.S. Attorney’s Office, and our law enforcement partners will continue to collaborate our efforts to protect the integrity of the Medicare and Medicaid programs," Hanley stated in a perspective widely shared amongst the individuals steering the crackdown on healthcare fraud.
