Big boy restaurant fraud case

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. So I'm trying to figure out how big of an enterprise big boy restaurant fraud case is," Drain said.

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.

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. Department of Justice. Often, the patients filled out Centre HRW sign-in sheets and Kazkaz billed Medicare even though no services were provided. Both Kazkaz and Khalel were indicted in January. Mustafa Hares, 76, who performed surgeries at several hospitals throughout Southeast Michigan, was indicted in March for what prosecutors say was his role in the scheme, which they say included completing fraudulent patient charts for kickbacks from the substance abuse therapy facility. Kazkaz pleaded guilty to the fraud and money laundering charges. Khalel and Hares have both pleaded not guilty, with trials set to start in January. The laundering was revealed in court proceedings in July, as first reported by The Detroit News , when Kazkaz admitted to making the loan to the year old Big Boy chain. 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. 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 FBI remains committed to working with our law enforcement partners to ensure that those who attempt to personally profit through these false claims and money laundering schemes are held accountable.

They are:. Frisch's officials are also still trying to figure out how Hudson allegedly managed to program the company's payroll computer to pay himself hundreds of thousands extra annually.

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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.

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. 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.

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But federal prosecutors in Detroit have had mixed success convincing jurors to convict doctors and health care professionals in fraud cases in the past year. He started at the company before graduating from the University of Cincinnati and spent his whole career in the accounting department. Maier is skeptical the company will recover any of the missing money but doesn't believe it will have to restate results. Hudson did not respond to multiple calls at his home or on his cell phone. There is no company named "National Restaurant Chain 1" in the state's business directory, and Big Boy's identity remained a secret until an April 11 court hearing during which Jones mentioned Big Boy by name, according to a court transcript reviewed by The News on Thursday. Get Your Fraud Fix! Contact Us. Still, he noted the company will face extensive questions from at least four regulatory agencies: the U. Hudson abruptly resigned 5 minutes before the meeting, turned off his computer and left. At one point, Big Boy executives were in talks about awarding Kazkaz his own franchise, the lawyer said. Big Boy. A civil fight over the money is ongoing.

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. Department of Justice.

Welcome to the Fraud of the Day Website! 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. Thank you for your interest in FraudoftheDay. Daily Articles Mon thru Fri. Had Hudson booked tons of bogus assets, such as buying non-existent equipment expenses, Frisch's would have had to restate financials — potentially triggering months of expensive regulatory review. Frisch's Restaurants Inc. These blogs are published for information purposes only and can be statements of opinion. Criminal charges have not been filed against Hudson. Oesterle, a professor at the Ohio State University with expertise in securities law, said Frisch's was doing the right thing by being transparent about the case. Robert Snell The Detroit News. Sales are up for the 12 months ending September and the company is virtually debt-free. Click here to login.