Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, has announced that Mohammed Kazim Ali was sentenced to 15 months in prison for paying healthcare kickbacks, a violation of the Anti-Kickback Statute. In addition to his incarceration, Ali is required to pay over $2.2 million in restitution to Medicaid and Medicare, along with a $75,000 fine.
Ali and Justin Hanson co-owned Noah Associates, a clinical laboratory in the Milwaukee area. Court records reveal that from 2017 onwards, they engaged in a scheme lasting three years where they paid kickbacks to the owner of a substance use treatment clinic in exchange for patient referrals for urine drug testing. These tests were not ordered by any physician nor medically necessary. Despite being told by a physician whose credentials were used without authorization to stop this practice, Ali continued billing the government for these tests under false pretenses. This resulted in Medicaid and Medicare paying over $2.2 million for unnecessary tests, with Ali personally receiving more than $800,000 during this period.
United States District Judge J.P. Stadtmueller highlighted the gravity of Ali's actions at sentencing, noting his manipulation and breach of trust regarding Medicaid and Medicare programs for unearned millions. The judge criticized Ali's decision as "beyond belief," given his awareness of its criminal nature.
Besides serving time in prison, Ali will be excluded from participating in Medicaid and Medicare programs and has shut down Noah Associates. Co-defendant Hanson also pleaded guilty and is scheduled for sentencing on March 21, 2025.
“Paying kickbacks for patient referrals is illegal because...kickbacks result in Medicaid and Medicare paying for unnecessary services,” said United States Attorney Haanstad. “Rather than bill the government for tests that patients actually needed, Ali abused the Medicaid and Medicare programs...The United States Attorney’s Office is committed to prevent frauds against Medicaid and Medicare.”
“This sentence demonstrates the FBI’s commitment...to ensure that those responsible for healthcare fraud are exposed and brought to justice,” stated Special Agent Michael Hensle of the FBI Milwaukee Field Office.
Mario M. Pinto from HHS-OIG remarked on how individuals accepting kickbacks prioritize profit over patient care: “Our agency is committed...to bring those who violate laws intended to protect patients...to justice.”
The investigation was conducted by the FBI and HHS-OIG with prosecution led by Assistant U.S Attorneys Michael Carter and Julie Stewart.