A Dearborn Heights pharmacist has admitted he was not just making honest mistakes behind the counter. Mohammad Hamdan, 44, pleaded guilty yesterday in federal court to running a five-year prescription-billing scheme that targeted Medicare, Medicaid and Blue Cross Blue Shield of Michigan. Prosecutors say he submitted or directed more than $3.2 million in bogus claims through pharmacies he controlled. Sentencing will be set after a presentence report is prepared.
The U.S. Attorney’s Office said in a U.S. Attorney's Office release that Hamdan pleaded guilty to conspiracy to commit health care fraud in what prosecutors call a pharmacy shortage scheme. According to investigators, his pharmacies billed insurers for prescriptions that were medically unnecessary or never actually dispensed, often because the drugs were not even in stock. The case was investigated by the HHS Office of Inspector General and the FBI and is being prosecuted by Assistant U.S. Attorney Jason Dorval Norwood.
Federal provider records list Hamdan as the owner of Corner Med Pharmacy in Dearborn Heights and Prime Pharmacy in Wyandotte, which prosecutors say were used to submit the false claims. Corner Med’s NPI registration names him as the authorized official (NPI Profile), and Prime Pharmacy’s NPI record does the same (NPINo).
How prosecutors say the scheme worked
Prosecutors describe what they call a phantom-fill or shortage fraud: pharmacies billing for high-reimbursing medications that were never purchased or given to patients. Over roughly five years, Hamdan submitted or directed false and fraudulent claims totaling more than $3.2 million, according to the announcement from the U.S. Attorney's Office.
Charges and penalties
Hamdan pleaded guilty to one count of conspiracy to commit health care fraud. The charge carries a possible maximum sentence of 10 years in prison, a $250,000 fine and up to three years of supervised release, according to court filings. Deadline Detroit also reported on the plea and notes that sentencing will be scheduled before U.S. District Judge Judith Levy.
A pattern in southeast Michigan
This is not an isolated case. Federal prosecutors in the Eastern District of Michigan have been steadily rolling up pharmacy-billing fraud cases in recent years, securing convictions and multi-million-dollar restitution orders. Coverage by ClickOnDetroit on a November 2025 Wayne County case highlights the broader crackdown in the region.
How to report suspected fraud
Anyone who suspects health care fraud can file a tip with the HHS Office of Inspector General online or by calling the OIG hotline at 1-800-HHS-TIPS. The OIG site explains what information helps investigators assess complaints, and the HHS Office of Inspector General reporting page includes a secure portal for filing complaints along with guidance for potential whistleblowers.
