Five charged in Houston with multimillion-dollar scam

June 13, 2007, 5:34PM

Five charged in Houston with multimillion-dollar scam

ROSANNA RUIZ
Houston Chronicle

Five Houston-area men are charged in a 38-count indictment, unsealed today, with bilking Medicare and Medicaid of millions of dollars and offering kickbacks to dialysis patients, the U.S. Attorney's Office announced.

FBI agents have arrested Ayad Fallah, 34, of Sugar Land; and Houston residents Murad Almasri, 29, Mazen Abdallah, 26, and Wesam Abdallah, 31. The men were expected to appear in federal court in Houston today.

An arrest warrant has been issued for a fifth man, Raed Elmasri, 35, who also was indicted but remains at large.

Fallah, Elmasri and Almasri operated Americare from 2002 until June 2006, when they sold the company to the Abdallahs, authorities said.

The indictment alleges that the defendants, through Americare, filed fraudulent claims seeking reimbursement for transporting dialysis patients to and from their homes for scheduled dialysis treatments when the transportation was not medically necessary.

According to the indictment, Americare billed the federal health-care programs for more than $20 million and received about $6 million.

Some of the defendants also are accused of offering patients or their family members kickbacks in return for allowing Americare to transport the patients to dialysis.

The defendants are charged with conspiracy to commit health-care fraud. If convicted, they face a maximum sentence of five years in prison and a $250,000 fine.

Murad Almasri and Wesam Abdallah also are charged with two counts each of violating the anti-kickback statute, while Mazen Abdallah is charged in one count. That charge carries the same sentencing range upon conviction.

Fallah, Almasri, Elmasri and Mazen Abdallah also are charged with conspiracy to commit money laundering.

If convicted, they could face a maximum penalty of 10 years' imprisonment and a $250,000 fine or twice the value of the property involved, whichever is greater.

rosanna.ruiz@chron.com

http://www.chron.com/disp/story.mpl/chronicle/4887672.html