On July 9, 2025, Dr. Mohammed Ahmad of Avon, Ohio, pleaded guilty to making false statements related to health care matters in connection with a telemedicine scheme involving durable medical equipment (DME). This case, prosecuted by the U.S. Attorney’s Office for the Northern District of Ohio, underscores the growing scrutiny of telemedicine arrangements and the importance of robust compliance protocols and legal review of marketing arrangements.
Dr. Ahmad, a licensed physician in Ohio since 2014, contracted with Florida-based Lifeline Recruiting Inc. to provide telemedicine services. Lifeline acquired Medicare beneficiary “leads” and used call centers to identify individuals eligible for orthotic braces and other DME. The company then provided pre-filled orders for Dr. Ahmad to sign, falsely indicating that he had personally examined patients and conducted necessary tests. Between November 2018 and May 2019, these orders led to approximately $267,402 in fraudulent Medicare claims.
Dr. Ahmad now faces up to five years in prison and a $250,000 fine. The owner of Lifeline Recruiting Inc. also pleaded guilty to charges related to the telemedicine scheme.
Common Growth Strategies May Be Risky
Telehealth providers, often guided by general marketing strategies to grow a virtual business, need to be especially thoughtful regarding the potential implications of their marketing arrangements.
Commission-based payments to marketing employees and contractors, purchasing leads, and benefits provided to referral sources to incentivize business may lead to fraudulent claims, as in the Ahmad case, or implicate the federal Anti-kickback Statute or state-specific health care fraud and abuse laws. Every health care marketing arrangement requires careful legal review and documentation to avoid distorted, and potentially illegal, incentives and resulting adverse consequences.
Conclusion
The Ahmad case serves as a reminder for health care providers to evaluate their marketing practices for potential kickbacks or incentives to generate false or fraudulent claims. Compensation structures for marketing employees, contractors, and outside vendors must be carefully analyzed to avoid violations of the Anti-kickback Statute, and ongoing internal training and compliance efforts regarding marketing activities are necessary to mitigate enforcement risk and safeguard against reputational harm.
[View source.]
