Metro Detroit Surgeon Was Sentenced to a Year in Prison in $7 Million Dollar Medicare Fraud Scheme

DETROIT -- A surgeon from Metro Detroit was sentenced yesterday for his involvement in a scheme to submit fraudulent claims to Medicare for psychotherapy services, announced United States Attorney Jerome F. Gorgon Jr.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Division, and Mario Pinto Mario M. Pinto, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

Mustafa Hares, 79, of West Bloomfield was sentenced by U.S. District Court Gershwin A. Drain to 12 months in federal prison. Hares was also ordered to pay $4.8 million in restitution and to serve a three-year term of supervised release following his incarceration.

According to court records, between 2019 and 2023, Hares and others joined in a scheme to submit more than $7 million in fraudulent claims for psychotherapy services which were never rendered. Hares joined with Mohammed Kazkaz in signing purported patient progress notes, which were actually written by employees in Mexico rather than by actual medical providers. Kazkaz was previously sentenced to 7 ½ years in prison for his role in this fraud scheme.

United States Attorney Gorgon stated, "This physician abused his medical license and position of trust as a doctor to facilitate a massive health care fraud scheme at the expense of the American taxpayer. We must eradicate fraud."

"Medicare fraud is theft from the American people, and physicians who exploit it for personal gain will be held responsible for their actions," said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. "The defendant's sentencing for this multimillion-dollar healthcare fraud scheme reflects the significant impact of his actions, which drained critical resources from a program designed to serve those in need and undermined trust in the medical professionals who follow the law. I commend the dedicated members of FBI Detroit, alongside our partners at the U.S. Department of Health and Human Services Office of Inspector General, whose work ensured those involved were brought to justice. Together, we remain committed to protecting the integrity of our healthcare system and those who depend on it."

"Patients place enormous trust in their medical providers, and schemes like this not only defraud Medicare but also betray that trust in deeply harmful ways," said Mario Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "When practitioners misuse their credentials to authorize false services, they jeopardize the care and well-being of the very people these programs are designed to protect. HHS-OIG, together with our law enforcement partners, remains firmly committed to uncovering such misconduct and ensuring that those who put patients at risk for personal gain are held accountable."

The Department of Justice has created the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The case was investigated by the Department of Health and Human Services - Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant United States Attorney Regina R. McCullough and Philip A. Ross.