Four pharmacy owners have been jailed after being convicted for their involvement in a large-scale healthcare fraud and wire fraud scheme.
The case revealed the pharmacists fraudulently billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for medications they never dispensed.
The Sentences
The following pharmacists received significant prison sentences for their roles in the conspiracy:
- Raef Hamaed (Maricopa County, Arizona): 10 years in prison
- Tarek Fakhuri (Windsor, Ontario, Canada): 7 years in prison
- Ali Abdelrazzaq (Macomb County, Michigan): 2 years in prison
- Kindy Ghussin (Greene County, Ohio): 5 years and 5 months in prison
The sentencing occurred throughout January 2025, with the final one being announced today.
Fraudulent Billing Scheme
According to court documents and evidence, the four pharmacists operated five pharmacies across Michigan and Ohio.
They submitted fraudulent claims for prescription medications to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan, even though they did not actually dispense the drugs.
The pharmacies involved were:
- Eastside Pharmacy
- Harper Drugs
- Wayne Campus Pharmacy (Michigan)
- Heartland Pharmacy and Heartland Pharmacy 2 (Ohio)
The fraudulent activities resulted in losses of over $13 million to federal and private health care programs.
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Convictions and Charges
In September 2024, a federal jury convicted Hamaed, Fakhuri, Ghussin, and Abdelrazzaq of conspiracy to commit health care fraud and wire fraud. The jury also convicted Fakhuri of one additional count of health care fraud.
Each pharmacist was sentenced based on their involvement in the conspiracy at various pharmacies:
- Hamaed: Convicted for his role at all five pharmacies
- Fakhuri: Convicted for his role at three pharmacies (Harper Drugs, Wayne Campus Pharmacy, and Heartland Pharmacy)
- Ghussin: Convicted for his role at Wayne Campus Pharmacy and both Heartland pharmacies
- Abdelrazzaq: Convicted for his role at Wayne Campus Pharmacy
Ongoing Efforts to Combat Health Care Fraud
The investigation and prosecution were led by the Justice Department’s Criminal Division and the FBI Detroit Field Office, in partnership with HHS-OIG. These agencies continue to take action against health care fraud across the country.
The Health Care Fraud Strike Force Program, led by the Criminal Division’s Fraud Section, is dedicated to identifying and charging health care fraudsters.
Since its launch in 2007, the program has brought charges against over 5,800 defendants who collectively billed more than $30 billion to federal health care programs and private insurers.
The Centers for Medicare & Medicaid Services, working alongside HHS-OIG, are also taking steps to hold healthcare providers accountable for their involvement in fraudulent schemes.
For more information on the program, visit the Health Care Fraud Unit.
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Key Takeaways
- Four pharmacists sentenced for fraudulent billing that cost taxpayers over $13 million.
- The fraudulent activities took place at pharmacies in Michigan and Ohio.
- A federal jury convicted the defendants of conspiracy to commit health care fraud.
- The Health Care Fraud Strike Force continues its mission to combat fraudulent health care practices across the U.S.
This case highlights the ongoing efforts to protect public and private health care systems from fraud and abuse.
