Steven Osbey, of Kernersville, NC, has agreed to entry of a consent judgment against him in the amount of $4,711,159.00 in favor of the United States and State of North Carolina (the Governments), subject to a separate agreement regarding his participation in the Governments’ ability to pay process. The judgment represents repayment to the government for allegations that Reign & Inspirations, LLC (R&I), a clinic co-owned by Osbey and Aljihad Shabazz, charged Medicaid for physician home visits that never occurred.
More specifically, the Governments alleged Osbey and Shabazz conspired to carry out an extensive healthcare fraud scheme wherein they submitted or caused to be submitted claims to NC Medicaid for in-home physician visits with patients that simply never occurred—in all, billing more than 30,000 hours of these purported physician visits and sometimes billing as if the physician provided over 100 in-home visits in a single day, purportedly lasting an hour each (an obvious physical impossibility). This investigation was conducted in parallel between the civil and criminal divisions of the US Attorney’s Office. Shabazz pleaded guilty to criminal healthcare fraud conspiracy and money laundering charges and was sentenced to 52 months in prison followed by two years of supervised release.