Federal prosecutors are asking a judge to order the forfeiture of $18.8 million in cash and valuables seized from Metro Detroit-based Quality Behavioral Health and its CEO, alleging the money is proceeds of Medicaid fraud and forced labor, The Detroit News reported Sept. 22.
The Sept. 22 civil forfeiture complaint alleges President and CEO Naveed Syed orchestrated a scheme to defraud Medicaid by billing for services that were never performed and forcing patients to work for him. No criminal charges have been filed amid the ongoing investigation.
In late August, federal agents raided at least three locations associated with Quality Behavioral Health, as well as Mr. Syed’s home. They also seized funds from accounts at seven financial institutions. Agents found $109,812 in cash in a dresser drawer at Mr. Syed’s Troy, Mich., home and $122,194 at the organization’s Troy location, including more than $52,000 in a safe above a toilet.
The government also alleged Quality Behavioral Health submitted more than $611,000 in claims for housing male clients in halfway houses, despite lacking necessary certifications. Prosecutors further alleged Mr. Syed required some Medicaid beneficiaries to work 12-hour days, six or seven days a week, under volunteer agreements that paid $40 per week.
Arthur Weiss, an attorney for Mr. Syed, who is suing to reclaim the seized money, told the News he had not read the forfeiture complaint and declined to comment on its specifics but said allegations are “simply that: allegations.”
Becker’s has reached out to Quality Behavioral Health and Mr. Weiss for comment and will update this story if new information becomes available.
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