[co-author: Stephanie Kozol]*
In May, California’s attorney general (AG) charged a local dermatologist with more than 20 counts of fraud after uncovering a scheme that allegedly resulted in the state’s Medicaid program paying out over $1.3 million for services that were never rendered.
The dermatologist, Ghada Kassab, allegedly invoiced as many as 233 patients daily. On any given day, Kassab reported seeing 60 to 70 patients for identical or comparable services. The California AG contends that Kassab fraudulently charged $1,386,995 to Medi-Cal—California’s Medicaid health care program that covers medical services for individuals with limited resources—for services that were not provided. As a result, the California AG charged Kassab with 22 counts of health insurance fraud and one count of Medi-Cal fraud. He also alleged that California’s White Collar Crime and Excessive Takings enhancements applied, requiring a more stringent sentence should Kassab be found guilty. Kassab faces up to five years in state prison for each individual count with the possibility of no probation.
Why It Matters
These serious charges are consistent with the current trend of AGs aggressively prosecuting fraud against the government—often pursuant to their state’s false claims statute—and they underscore the great need to ensure that any request for payment from the government is in strict compliance with all legal obligations. As the California AG stated, he “will not tolerate fraud” and he will continue to “take prompt action to ensure” that anyone who attempts commit such fraud “is held accountable.”
*Senior Government Relations Manager
