Rabih Hamdan, 41, of Dearborn Heights has admitted he helped run a health care billing scam that went after both public and private insurers. He pleaded guilty Tuesday in federal court in Detroit to a conspiracy charge and acknowledged signing off on bogus claims that prosecutors say were part of a wider wave of pharmacy and billing fraud cases hitting southeast Michigan.
According to The Detroit News, Hamdan entered his plea on April 7 to one count of conspiring to commit health care fraud. In court, he admitted taking part in a scheme to obtain nearly $2 million from Medicare, Medicaid and a private health insurer. The paper reports that a sentencing date has not yet been set and that the plea was entered in federal court in Detroit, citing a statement from the U.S. Attorney’s Office.
Federal Penalties And What The Law Allows
Under federal law, health care fraud is a felony that can bring up to 10 years in prison, along with fines and supervised release that depend on the financial loss and other factors. See 18 U.S.C. § 1347. Recent pharmacy billing cases highlighted in Eastern District press releases have pointed to potential fines often cited around $250,000 and terms of supervised release in comparable prosecutions, as noted in a recent U.S. Attorney announcement in another Dearborn Heights case.
A Pattern In Southeast Michigan
Hamdan’s guilty plea is not happening in a vacuum. Federal officials have been steadily turning up the heat on pharmacy and billing schemes in the region. Earlier this year, prosecutors said a Dearborn Heights pharmacist pleaded guilty after authorities alleged his pharmacies pushed through more than $3.2 million in false claims.
Investigation And Next Steps
Prosecutors told The Detroit News that the investigation into Hamdan’s conduct was handled by the U.S. Department of Health and Human Services Office of Inspector General and the FBI, with the U.S. Attorney’s Office in Detroit leading the prosecution. A sentencing date will be set after a presentence report is completed, according to the outlet.
How To Report Suspected Fraud
Federal authorities say they rely heavily on tips from the public to spot suspicious billing and pharmacy activity. Anyone who suspects health care fraud can contact the HHS-OIG hotline at 1-800-HHS-TIPS (1-800-447-8477) or file a complaint online. The HHS Office of Inspector General offers an online reporting portal and guidance for whistleblowers at oig.hhs.gov.
