Michigan Physical Therapist and Physician Assistant Plead Guilty to Healthcare Fraud, Another to Face Jail Time

Three Detroit-area residents face legal trouble pertaining to healthcare fraud for their roles in separate fraud schemes, according to a news release from the Department of Justice.

Faisal Chaudry and Guy Ross, who were respectively employed as a physical therapist and physician assistant for differing healthcare companies, pleaded guilty yesterday to Medicare home healthcare fraud. Separately, Dwight Armstrong, who worked as a patient recruiter for another fraudulent company, faces prison time for various felony charges related to kickbacks.

Mr. Chaudry admitted to filing false claims for home health visits that never occurred and being paid $45 by his employer All American Home Care for each document he signed.

Mr. Ross admitted to receiving kickbacks from his employer Patient Choice Home Healthcare and All American Home Care for patient referrals to these companies and pocketed $500 for each recruited patient.

Mr. Armstrong pleaded guilty to paying kickbacks to patients he recruited to Careplus in 2008. Owners of Careplus reportedly paid him anywhere between $100 to $150 for each patient he recruited, with Mr. Armstrong keeping half of those pay-outs for himself. In addition, he admitted to instructing patients he recruited to Careplus to explain their condition in such a way that would necessitate tests they didn't really need, according to the Department of Justice.

Mr. Chaudry and Mr. Ross have been scheduled for sentencing for October 2010.

Read the Department of Justice's report on these healthcare fraud cases.

Read more coverage on recent healthcare fraud cases:

- California Cardiology Lab to Pay $3.6M to Settle Fraud Allegations

- Massachusetts Physical Therapist, Practice Owner Convicted of Healthcare Fraud

- WellCare Whistleblower Suit Unsealed as Tampa U.S. Attorney's Office Moves Toward Settlement

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