FWA (NC)- Greensboro clinic owner indicted in 4.7M fraud scheme


MM Curator summary

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[MM Curator Summary]: Aljihad Shabazz stole $4.7M of your tax dollars by stealing Medicaid member info to submit bogus claims for “community outreach programs” and other services that were never provided.


Clipped from: https://greensboro.com/community/rockingham_now/news/greensboro-clinic-owner-indicted-medicaid-fraud/article_d3b671a0-e7fa-11ed-987e-9ff1bbe1a5c2.html



A Kernersville man who owns a Greensboro health care clinic was indicted for his alleged involvement in defrauding the North Carolina Medicaid Program of more than $4.7 million, according to Dena J. King, U.S. Attorney for the Western District of North Carolina.

The 10-count indictment charges Aljihad Shabazz, 44, with health care-fraud conspiracy, health care fraud, money-laundering conspiracy, and money laundering.

The federal indictment alleges that Shabazz owned and operated Reign & Inspirations, LLC (R&I), a Greensboro clinic that purportedly provided outpatient behavioral services in Greensboro and surrounding areas.

A summons has been issued and Shabazz will make an initial appearance in federal court. The health care fraud conspiracy and health care fraud offenses carry a maximum penalty of 10 years in prison per count. The money-laundering conspiracy and money laundering offenses carry a maximum penalty of 20 years in prison per count, according to information provided by the U.S. Attorney’s Office.

Shabazz could not be immediately reached Friday afternoon for comment. When someone answered a call placed to the publicly-listed phone number of the clinic, they said it was the “wrong number” for Shabazz.

According to allegations contained in the indictment, Shabazz allegedly conspired with other people between 2017 and 2020 to carry out an extensive health care fraud scheme involving the submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries.

Shabazz allegedly obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I.

Shabazz and his co-conspirators allegedly used the beneficiaries’ PII to submit more than 1,500 fraudulent reimbursement claims to Medicaid, some of which claimed that R&I provided services that exceeded 24 hours in a single day.

The indictment also alleges that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals, among other things.