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, big boy restaurant fraud case, the company is bouncing checks, facing utility shutoffs, defaulting on payments to landlords and has been unable to buy groceries for its franchises.

Mohammed Kazkaz mixed his love of fraud and his love of burgers into a scheme that maybe neither health care professionals nor fast-food joints have ever seen before. Kazkaz owned and controlled Centre HRW, a psychotherapy agency in Farmington Hills, Michigan whose sole purpose was to submit false and fraudulent claims to Medicare for psychotherapy services that were not provided nor eligible for reimbursement to begin with. 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. That was the easy part. Then Kazkaz needed to hide the money. Oh well. Medicare needs to pay real medical bills.

Big boy restaurant fraud case

Criminal charges have not been filed against Hudson. Hudson did not respond to multiple calls at his home or on his cell phone and was not at his house Tuesday when a reporter visited. A woman at his home who identified herself as his mother said he wasn't home and declined comment. The company said it discovered the alleged theft in late December after an internal audit revealed discrepancies. It also disclosed findings of an internal investigation to the U. Attorney's Office in Cincinnati last week for potential criminal charges. Chief Executive Craig Maier says the alleged theft has rocked the close-knit company that operates 96 diners in Ohio, Kentucky and Indiana and employs 6, workers. At the corporate offices, Hudson was unassuming but helpful and occasionally sent co-workers pictures of jackpots he won at the Horseshoe Casino downtown. Unbeknownst to colleagues, some years he allegedly embezzled so much he took home more than Maier. You wake up in the middle of the night and say 'I can't believe he did this to us — to me. The scandal comes as Frisch's looks to reignite growth and investors have showed renewed faith in the company. The news rattled investors: By Wednesday's close, Frisch's stock dropped 4. Maier is skeptical the company will recover any of the missing money but doesn't believe it will have to restate results.

Kazkaz pleaded guilty to the fraud and money laundering charges. Share your feedback to help improve our site!

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.

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.

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.

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Through its lawsuit, Frisch's plans to subpoena Horseshoe Casino video and other records to determine how much Hudson lost there. You must correct or enter the following before you can sign up:. Department of Justice. Besides a couple of traffic violations a decade ago, a background check of Hudson reveals no bankruptcies or other legal problems. A woman at his home who identified herself as his mother said he wasn't home and declined comment. Oops » Read More. Kazkaz's lawyer cited data from comparable criminal cases involving healthcare fraud locally during the last five years and concluded that a sentence of months would be appropriate. Robert Snell The Detroit News. He had his own office, but like most top officers, he mostly kept the door open. Then Kazkaz needed to hide the money. Hudson raised no red flags, Frisch's officials said. That's because Hudson already booked most of his alleged theft as expenses.

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.

First Name. Criminal charges have not been filed against Hudson. So I'm trying to figure out how big of an enterprise this is," Drain said. Enter your details below and select your area s of interest to receive Law Real Estate Authority daily newsletters. He had his own office, but like most top officers, he mostly kept the door open. To receive the most current fraud articles direct to your inbox, click the Subscribe button above. Follow us:. Fraudster Mohamed Kazkaz awaits sentence in case that pushed Big Boy restaurants to brink. If Hudson failed to report all his income to the Internal Revenue Service, the tax agency would be first in line to collect from recouped funds. 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. Maier says the alleged embezzlement was so large it lowered company profits by about 5 percent over seven years. No Thanks Sign up now.