Medicare fraud rises in Detroit area

May 25, 2009 7:07:59 AM PDT
Federal prosecutors say they are expecting guilty pleas in a case involving a clinic in a Detroit suburb that is accused of paying patients for phony or unnecessary treatments. Investigators say Livonia Wellness Services in Livonia recruited people and then received more than $500,000 in Medicare reimbursements in just six months. The clinic has been closed.

Assistant U.S. Attorney F. William Soisson (SOY'-sun) says three people have negotiated plea deals.

The FBI says Medicare has paid more than $10 million to Detroit-area clinics suspected of billing for services that weren't performed or weren't necessary.

The government is creating a strike force in Detroit with more investigators assigned to Medicare fraud.

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