Bethesda doctor and his companies told to repay $17 million in fraudulent claims

Federal, Maryland, Washington, D.C., governments sued to recover money

By St. John Barned-Smith Staff Writer

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Last year, the federal government sued Dr. Ishtiaq A. Malik and two companies he owns — Ishtiaq A. Malik M.D., P.C., and Advanced Nuclear Diagnostics, P.C., operating in Washington, D.C. Maryland and the District of Columbia joined the suit.A Bethesda doctor and two companies he owns have been ordered to pay the state and federal governments more than $17 million for submitting false or fraudulent claims to health care programs, according to the Maryland Attorney General’s Office.

The Maryland attorney general’s office said in a July 31 news release that the lawsuit resulted from illegal claims for payment to Medicaid, Medicare and other government health care programs in connection with cardiac nuclear stress tests.

An investigation revealed that Malik had double-billed for some services, submitted claims for additional services not related to the provided treatment and billed for services never provided, the news release said.

Malik and his companies also engaged in a practice known as unbundling — billing separately for procedures that are part of another service for which they also billed in full, according to the attorney general’s office.

U.S. District Court Judge Robert Wilkins ordered Malik and his companies to pay penalties of $5,500 for each false claim submitted to a government health care program, totaling $1,672,000. Maryland’s share of that amount has yet to be determined.

Additionally, the federal government will receive three times the fraudulent claims submitted, totaling more than $15 million. The District’s Medicaid Program also will receive triple damages, totaling more than $390,000.

Malik and his companies were ordered to pay Maryland $305,151.24, triple the amount of improperly billed services reimbursed by the Maryland Medicaid Program. Maryland’s False Claims Act provides for triple damages in certain Medicaid fraud actions.

Frederick Cooke, Malik’s lawyer, could not be reached for comment on Tuesday

A call to a number listed for Malik in federal court records was not answered.

http://www.gazette.net/article/20130807/NEWS/130809444/1022/bethesda-doctor-and-his-companies-told-to-repay-17-million-in&template=gazette

Judge rules to release Dr. Farid Fata, Michigan doctor accused of misdiagnosing patients with cancer

Posted: 08/08/2013
Last Updated: 1 hour and 59 minutes ago

(WXYZ) - Dr. Fata is an oncologist and hematologist with several offices throughout Metro Detroit.  He was arrested earlier this week and records were seized by federal agents at his clinics and his Oakland County home.

During the first court hearing in front of Magistrate David Grant, the government argued the doctor is a flight risk because he has access to $4 million in cash and other assets totaling $14 million and has family ties to Lebanon.

But his defense attorney Christopher Andreoff argued Dr. Fata is a family man, his wife was in court, he's a naturalized citizen since 2009, and while he has family in Lebanon, he's only traveled there once in ten years.

Leaving the courthouse, Fata's wife, Samar Fata, declined to comment on the proceedings. Samar Fata is the CFO of Fata's medical company.

The magistrate ruled the doctor can be released on home incarceration with electronic monitoring, surrender his passport, no contact with any of his 1,200 patients or his clinics, his 60 employees, no patient consultation, and no access to billing and check writing and set a cash bond of $170,000.

The government made an immediate appeal, but District Judge David Lawson ruled to uphold the magistrate's ruling late Thursday.

Judge Lawson says it sounds like the government may be "shooting in the dark" as far as identifying Fata's liquid assets, and the government may need more time to make its case.

The ruling does not mean Dr. Fata is free to leave jail immediately. He will spend Thursday night at Wayne County Jail and his defense attorney will ask for a continuation  hearing on Friday where the doctor can post bond.

The government told the magistrate it is building the case with many more patients and family members coming forward. Five family members were allowed to speak at the first hearing under victim impact rules and told the magistrate that the doctor should be held in custody because their loved ones went through-- what they say-- is unnecessary and painful treatment for cancer and died. 

The government calls the doctor greedy, billing Medicare $150 million dollars and collecting $62 million in the last 3 years.  Plus, government agents going through the seized records found he has 33 different bank accounts.  They are trying to freeze his assets as they continue their investigation. 

Family members of Fata's former patients spoke in court today, providing anecdotal evidence to the government's allegations.

"It was hard to stand and look at the man." said Jeff Berz, whose father died of cancer, "If there was any doubt in my mind that he harmed my father, it would be hard to be looking at him."

Fata's defense attorney says the government's case needs independent experts to look through the thousands of files seized.

"The government has not retained an expert to give an opinion that there was a mistreatment or misdiagnosis or unnecessary tests given to any patient." said attorney Chris Andreoff, "These are just general allegations that may be coming from disgruntled employees."

Many other patients have come forward, saying the doctor has provided great medical care including a woman who did not give her name, but came to court saying the doctor treated her blood disorder during two successful pregnancies and another doctor said her treatment was correct. 

Dr. Fata faces up to 20 years in prison, but that could change to life in prison if the government expands its case with a victim who died as a result of improper treatment.

Read more: http://www.wxyz.com/dpp/news/judge-rules-to-release-dr-farid-fata-michigan-doctor-accused-of-misdiagnosing-patients-with-cancer#ixzz2bTCQ0EZ7