Big boy restaurant fraud case

Kazkaz, who owns Centre HRW, allegedly bribed Ziad Khalel, a patient recruiter, to refer Medicare patients to his center even when medically unnecessary, according to a complaint by the U.

Frisch's Restaurants Inc. On Tuesday, the nation's largest Big Boy franchisee said in a regulatory filing that it has filed a civil lawsuit against Michael Hudson, its former assistant treasurer and year company veteran, accusing him of embezzlement. The Walnut Hills-based company says it discovered the alleged theft in late December after an internal audit revealed cost discrepancies. It also disclosed findings of an internal investigation to the U. Attorney's Office in Cincinnati last week for potential criminal charges. CEO Craig Maier says the alleged theft has rocked the close-knit company.

Big boy restaurant fraud case

Mohammed Kazkaz mixed his love of fraud and his love of burgers into a scheme that maybe neither health care professionals nor fast-food joints have ever seen before. Kazkaz owned and controlled Centre HRW, a psychotherapy agency in Farmington Hills, Michigan whose sole purpose was to submit false and fraudulent claims to Medicare for psychotherapy services that were not provided nor eligible for reimbursement to begin with. Kazkaz offered and provided kickbacks and bribes to Ziad Khalel, who was a patient recruiter, as an inducement to refer Medicare beneficiaries to Centre HRW for psychotherapy services, even though such services were medically unnecessary and were never rendered. That was the easy part. Then Kazkaz needed to hide the money. Oh well. Medicare needs to pay real medical bills. Find another investor, Big Boy. Great job by the FBI. As announced Oct. In pleading guilty, Kazkaz admitted to owning and operating Centre HRW, a purported psychotherapy agency in Farmington Hills, for the purpose of submitting false and fraudulent claims to Medicare for reimbursement for services. Five days a week wake up to the most current fraud article in your inbox. Thank you for your interest in FraudoftheDay. Welcome to the Fraud of the Day Website! Check out our podcast The FraudKast.

Three cars, a truck and van were parked in the driveway. Weekly Digest Fri recap.

Mohamed Kazkaz, 54, will be sentenced Thursday by U. District Judge Gershwin Drain in Detroit, capping what initially appeared to be a mundane Medicare fraud case in a region ravaged by scams involving entrepreneurs and medical professionals who victimized the nation's healthcare program. Prosecutors want Kazkaz sentenced to months in federal prison, saying he cheated Medicare by diverting money that could have been spent providing healthcare services to people nationwide. Attorney Regina McCullough wrote in the government's sentencing memorandum. Kazkaz's lawyer, Kenneth Chadwell, requested a sentence as short as three years in prison, noting his client is a Syrian immigrant with an otherwise clean record, a husband and father of five who has accepted responsibility for committing a nonviolent crime. Federal agents scrambled to recover money from Kazkaz during the investigation and froze money in Big Boy's accounts. The restaurant chain's executives said in April that the moves prompted the company to bounce checks, face utility shutoffs, default on payments to landlords and left restaurant officials unable to buy groceries.

Mohamed Kazkaz of Farmington Hills on Tuesday pleaded guilty to leading a health care fraud conspiracy and money laundering three months after he was indicted alongside four others in the latest crackdown on health care fraud in Michigan. In return, prosecutors dropped eight other counts. Reading from a prepared script in court Tuesday, Kazkaz admitted he conspired with others to cheat Medicare by billing for phony psychotherapy sessions and laundering some of the money through Big Boy. District Judge Gershwin Drain in a faint voice. Advisory sentencing guidelines, which the judge can ignore, recommend a sentence of nine to more than 11 years in federal prison. Prosecutors have agreed to seek no more than 10 years. The entrepreneur sat quietly Tuesday, his head hung low, during the brief court hearing in front of Drain in federal court in Detroit.

Big boy restaurant fraud case

Mohamed Kazkaz, 54, will be sentenced Thursday by U. District Judge Gershwin Drain in Detroit, capping what initially appeared to be a mundane Medicare fraud case in a region ravaged by scams involving entrepreneurs and medical professionals who victimized the nation's healthcare program. Prosecutors want Kazkaz sentenced to months in federal prison, saying he cheated Medicare by diverting money that could have been spent providing healthcare services to people nationwide. Attorney Regina McCullough wrote in the government's sentencing memorandum.

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Three cars, a truck and van were parked in the driveway Tuesday. Password at least 8 characters required. Four others were charged with health care fraud conspiracy in the indictment unsealed Thursday. Medicaid Fraud. Frisch's: Top exec stole millions. Craig Welkener wrote in opposition to Big Boy accessing frozen funds. Maier says auditors discovered thousands of dollars of withdrawals from his personal accounts at the Horseshoe Casino Cincinnati. Big Boy's lawyer is concerned about waiting years for the criminal case to be resolved and to get access to the money. Start Reading. But I don't see them very often. So I'm trying to figure out how big of an enterprise this is," Drain said. Whenever false claims are submitted to our federal health care programs, everyone bears the cost through potentially higher insurance premiums, out-of-pocket expenses, and even reduced or lost benefits. The feds froze the Big Boy funds during the investigation and the restaurant operators warned of restaurant closures and layoffs if it could not access the money. But Hudson was also helpful: somehow he ended up doing some of the work for colleagues that might have exposed his alleged theft. Still, he noted the company will face extensive questions from at least four regulatory agencies: the U.

Some of the money has been frozen during an ongoing hunt for cash that has shed light on the finances of a nearly year-old restaurant chain and revealed the latest crackdown on health care fraud in Metro Detroit. Federal court records and a transcript reveal that amid the government's actions, the company is bouncing checks, facing utility shutoffs, defaulting on payments to landlords and has been unable to buy groceries for its franchises. During an April 11 hearing, U.

For more information, please complete the following form. Department of Justice. A woman at his home who identified herself as his mother said he wasn't home and declined comment. He started at the company before graduating from the University of Cincinnati and spent his whole career in the accounting department. A routine review of records in mid December uncovered discrepancies. Big Boy's lawyer is concerned about waiting years for the criminal case to be resolved and to get access to the money. District Judge Gershwin Drain in Detroit, capping what initially appeared to be a mundane Medicare fraud case in a region ravaged by scams involving entrepreneurs and medical professionals who victimized the nation's healthcare program. To receive the most current fraud articles direct to your inbox, click the Subscribe button above. Already have access? Maier says one silver lining is Frisch's doesn't believe it will have to restate it financials or record any charges after preliminary results from its forensic accountants from Deloitte. Still, he noted the company will face extensive questions from at least four regulatory agencies: the U. Hudson did not respond to multiple calls at his home or on his cell phone and was not at his house Tuesday when a reporter visited. The health care fraud conspiracy charge carries the stiffest penalty , a maximum year federal prison sentence. Hudson's 3-bedroom, 2-bathroom house is one of many modest split-level and ranch homes built in the s on a narrow, quiet block in Union Township.