Two Georgia Men Sentenced in $522 Million Medicare Fraud Scheme

Two men from Georgia received prison sentences Monday for their roles in a $522 million fraud scheme that targeted Medicare, Medicaid and private insurers through kickbacks, fake medical orders and DNA samples from patients across the country.

Reyad Salahaldeen, 57, of Buford, was sentenced to 12 years and 7 months in prison after pleading guilty to conspiracy to commit health care fraud and wire fraud. Mohamad Mustafa, 28, of Duluth, received three years in prison after pleading guilty to paying illegal health care kickbacks, the Justice Department said.

"Under the guise of health care, these two fraudsters attempted to steal more than half a billion dollars from taxpayers," the Justice Department said.

Federal prosecutors said the scheme produced about $84 million in payouts from Medicare, Medicaid and private insurers. The operation drained taxpayer-funded health programs and prompted a wider federal crackdown, authorities said.

A network of marketers targeted individuals, many on Medicare, and convinced them to take genetic tests promoted as free or vital screenings, such as for cancer risk. Prosecutors said the tests were often unnecessary and ordered by medical providers who had never treated the patients or used the results.

Laboratories billed government health programs for the expensive tests, which would not have been approved otherwise, officials said.

Both men must pay restitution. Salahaldeen owes more than $84.5 million, and Mustafa more than $64.3 million. Salahaldeen also must forfeit over $3 million from bank accounts, a 2019 GMC Yukon and properties in Texas and Georgia.

Mustafa was born in the United States. Salahaldeen, a Palestinian national, became a lawful permanent resident in 2004, officials said.

The scheme operated from 2018 through August 2020. Marketers used telemarketing calls, door-to-door visits and health fairs to gather DNA samples and insurance details from patients.

Court documents show Salahaldeen controlled laboratories in New Jersey, Georgia and Texas, including Express Diagnostics and BioConfirm Laboratories. He falsified requisition forms, letters of medical necessity and other records to make the tests look legitimate.

Mustafa co-controlled some labs and paid kickbacks while creating fake contracts and invoices to hide the payments as legitimate marketing services. The labs submitted about $522 million in fraudulent claims, with government programs and private insurers paying roughly $84 million.

Salahaldeen tried to dodge arrest after learning of the charges. He traveled from North Carolina to Texas and attempted to cross into Mexico using someone else's identification before authorities caught him at the border.

Federal officials said large fraud schemes now involve organized networks across states. They cited a Minnesota COVID-19 fraud case called Feeding Our Future that allegedly took more than $240 million in federal funds for child feeding. That case used shell nonprofits, fake meal counts and falsified records, leading to dozens of charges and sentences up to 28 years.

Eleven other co-conspirators, including marketers, nurse practitioners and doctors, already received sentences from probation to nearly four years. The case fits a broader federal effort against health care fraud.

Justice Department officials said it reflects work by Trump's Task Force to Eliminate Fraud, chaired by Vice President JD Vance. Since 2007, the DOJ Health Care Fraud Strike Force Program has charged over 6,200 defendants for more than $45 billion in fraudulent billing.