Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that Mohammed Kazim Ali has been sentenced to 15 months in prison for violating the Anti-Kickback Statute by paying healthcare kickbacks. Ali was also ordered to pay over $2.2 million in restitution to Medicaid and Medicare, along with a $75,000 fine.
Ali and Justin Hanson, co-owners of Noah Associates, a Milwaukee-area clinical laboratory, were involved in a scheme starting in 2017. They paid kickbacks to a Milwaukee substance use treatment clinic owner for patient referrals for urine drug testing at their lab. These tests were neither physician-ordered nor medically necessary. Despite being told by a physician to stop using his credentials without permission, Ali continued billing the government for these tests. The scheme resulted in Medicaid and Medicare paying over $2.2 million for unnecessary tests while Ali personally received more than $800,000.
United States District Judge J.P. Stadtmueller highlighted the gravity of Ali's crime during sentencing, noting his breach of trust with Medicaid and Medicare programs and criticizing his actions as "beyond belief." Besides his prison sentence, Ali will be excluded from participating in Medicaid and Medicare programs and has closed Noah Associates. Hanson has pleaded guilty to similar charges and awaits sentencing on March 21, 2025.
“Paying kickbacks for patient referrals is illegal because, as this case demonstrates, kickbacks result in Medicaid and Medicare paying for unnecessary services,” said United States Attorney Haanstad. “Rather than bill the government for tests that patients actually needed, Ali abused the Medicaid and Medicare programs for ill-gotten gains."
“This sentence demonstrates the FBI’s commitment to investigating individuals like Mr. Ali who erode the public’s trust in our healthcare systems,” stated Special Agent Michael Hensle from the FBI Milwaukee Field Office.
Mario M. Pinto from the U.S. Department of Health and Human Services added: “Individuals and medical providers who accept kickbacks... place personal profit ahead of patient care... Our agency is committed to working with our law enforcement partners to bring those who violate laws intended to protect patients... to justice.”
The investigation was conducted by the Federal Bureau of Investigation and the Office of Inspector General at the Department of Health and Human Services. Assistant United States Attorneys Michael Carter and Julie Stewart led the prosecution.