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Michigan Business Owner Convicted of $1.9M Healthcare Fraud Scheme

A business owner from Dearborn Heights pleaded guilty to conspiring to commit healthcare fraud, which resulted in $1.9 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. 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 healthcare 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.