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The U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI) are on a roll in Michigan. Fraud is clearly a major factor in the exploding cost of health care, especially Medicaid's and Medicare's. Funny how you never get informed about these frauds in the media:
Pharmacist and Business Owner Pleads Guilty to $3M Medicare, Medicaid, and Private Insurer Fraud Scheme
U.S. Attorney's Office, Eastern District of Michigan - February 24, 2026
For Immediate ReleaseDETROIT – A pharmacist and business owner who engaged in a five-year pharmacy shortage fraud scheme at two separate pharmacies pleaded guilty today, announced United States Attorney Jerome F. Gorgon, Jr.
Gorgon was joined in the announcement by Mario M. Pinto, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Field Division.
Mohammad Hamdan, age 44, from Dearborn Heights, Michigan, pleaded guilty to the charge of conspiracy to commit health care fraud for a scheme that caused over $3 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan.
At the hearing, Hamdan admitted to utilizing his two pharmacies to submit false and fraudulent claims for prescriptions even though the prescribed drugs were medically unnecessary or not actually dispensed. In many instances, the pharmacies lacked the inventory to dispense these drugs but billed the health care insurers as thought they had been dispensed. Over the five-year scheme, Hamdan submitted or directed the submission of false and fraudulent claims totaling over $3.2 million.
Sentencing before United States District Judge Judith Levy will be set after a presentence report is prepared. Hamdan faces a possible maximum sentence of not more than 10 years’ imprisonment without the possibility of parole, a fine of not more than $250,000, and up to three years of supervised release following any term of imprisonment.
The case was investigated by the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.
A second individual named Hamdan from the same city, Dearborn Heights, pleaded to a similar $ 1.9 million fraud:
Business Owner Convicted of $1.9M Medicare, Medicaid, and Private Insurer Fraud Scheme
Press Release - April 7, 2026
For Immediate Release
U.S. Attorney's Office, Eastern District of MichiganDETROIT – A business owner from Dearborn Heights pleaded guilty today to conspiring to commit health care fraud, which resulted in $1.9 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan, announced United States Attorney Jerome F. Gorgon, Jr.
Gorgon was joined in the announcement by Mario M. Pinto, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Jennifer Runyan, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Office.
Pleading guilty was Rabih Hamdan, 41, of Dearborn Heights, Michigan.
At the plea hearing, Hamdan admitted to creating and operating a scheme to submit false and fraudulent claims for prescription drugs that were medically unnecessary or not actually dispensed. In many instances, his pharmacy lacked the inventory to dispense these drugs but billed the health care insurers as though they had been dispensed. In these instances, the medications were never ordered by a physician. Hamdan used the fraud proceeds for his personal use and to benefit others. In total, Hamdan and his coconspirators submitted false and fraudulent claims totaling at least $1.9 million over a five-year period.
Sentencing before United States District Judge Matthew F. Leitman will be set after a presentence report is prepared. Hamdan faces a possible maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.
The case was investigated by the Department of Health and Human Services - Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.
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