The federal government continued its crackdown on healthcare fraud in Michigan.
A business owner from Dearborn Heights pleaded guilty this week to conspiring to commit health care fraud, which resulted in $1.9 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan, announced United States Attorney Jerome F. Gorgon, Jr.
Rabih Hamdan, 41, of Dearborn Heights, Michigan, pleaded guilty to the charges.
At the plea hearing, Hamdan admitted to creating and operating a scheme to submit false and fraudulent claims for prescription drugs that were medically unnecessary or not actually dispensed.
Michigan man pleads guilty to defrauding Medicare, Medicaid, and private insurance for nearly $2 million… FBI investigated this case with our HHS and DOJ partners as part of our nationwide fraud takedown. More to come. pic.twitter.com/yr2KXYiq7B
— FBI Director Kash Patel (@FBIDirectorKash) April 9, 2026
CASE UPDATE from @FBIDetroit: Michigan Business Owner Convicted of $1.9M Medicare, Medicaid, and Private Insurer Fraud Scheme
— FBI (@FBI) April 9, 2026
Rabih Hamdan, 41, admitted to creating and operating a scheme to submit false and fraudulent claims for prescription drugs that were medically… pic.twitter.com/5Ni2duPKad
In many instances, his pharmacy lacked the inventory to dispense these drugs but billed the health care insurers as though they had been dispensed.
In these instances, the medications were never ordered by a physician. Hamdan used the fraud proceeds for his personal use and to benefit others. In total, Hamdan and his coconspirators submitted false and fraudulent claims totaling at least $1.9 million over five years.
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Gorgon was joined in the announcement by Mario M. Pinto, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Jennifer Runyan, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Office.
Sentencing before United States District Judge Matthew F. Leitman will be set after a presentence report is prepared. Hamdan faces a possible maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.
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 Jason Dorval Norwood.
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