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Michigan man charged with Medicaid fraud

On Behalf of | Feb 22, 2024 | White Collar Crimes |

A Michigan man who operated a consulting firm in Detroit has been accused of defrauding Medicaid. The 59-year-old Livonia resident was arraigned on four counts of Medicaid fraud in an East Lansing District Court on Feb. 14. Each count carries a maximum custodial sentence of four years and a maximum fine of $50,000. The man is scheduled to appear in court again on Feb. 23 to attend a probable cause hearing. He was released on a personal recognizance bond of $50,000.

Therapeutic mentors

The Michigan Department of Attorney General’s Health Care Fraud Division began investigating the man’s alleged activities after receiving a tip. Investigators discovered that the man’s consulting firm had submitted multiple Medicaid claims for counseling services provided to children. Such services must be provided by individuals who have earned a master’s degree in social work, but the man allegedly employed unlicensed individuals that he referred to as “therapeutic mentors.”

Services not provided

Charges were filed against the man when investigators became convinced that he submitted Medicaid claims for services that were not provided. The man and his consulting firm, which he opened in 2019, were registered as Medicaid providers. In a Feb. 14 press release, the Michigan attorney general described the investigation as “intensive” and vowed to continue to crack down on white-collar crimes like Medicaid fraud.

White-collar crimes

The evidence gathered in white-collar crime investigations is often compelling, which means the prosecutors assigned to these cases usually negotiate plea agreements from a position of strength. However, prosecutors often make generous plea offers in white-collar crime cases to avoid the risks and costs of a trial. The penalties for committing crimes like fraud, embezzlement and bribery can be severe, but the vast majority of white-collar crime cases are resolved at the negotiating table.