Two Indicted in Scheme to Defraud Medicare and Blue Cross Blue Shield of Michigan

Two individuals have been indicted in connection with an alleged health care fraud scheme operated in the Bay City, Michigan area, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Lamont Pugh, III, Department of Health & Human Services (HHS), and Special Agent in Charge Andrew G. Arena, Federal Bureau of Investigation (FBI), Detroit Field Division, announced today.

DR. RICHARD A BEHNAN, D.P.M., 54, of Flint, Michigan and KELLY MOREL, 48, of Davison, Michigan were each indicted by a grand jury in Bay City with conspiracy to commit health care fraud and 41 counts of substantive health care fraud. According to the indictment, DR. BEHNAN and MOREL provided podiatric services to patients at various senior centers in the Eastern District of Michigan, Northern Division and elsewhere. The indictment alleges that Behnan and Morel diagnosed patients with fictitious foot and toe infections and billed insurance providers for surgical procedures that were never rendered. The indictment also alleges that DR. BEHNAN and MOREL caused approximately $883,000 in fraudulent billing to the Medicare program and Blue Cross Blue Shield of Michigan.

The charges of health care conspiracy and health care fraud carry a maximum sentence of 10 years in prison and a $250,000 fine, per count. An indictment is merely a charge and defendants are presumed innocent until proven guilty.

The HHS Office of Inspector General (HHS-OIG) and FBI conducted the investigation. The case is being prosecuted by Assistant United States Attorney Shane N. Waller.

HHS's Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov/.