Mahlega Abdsharafat, known as "Mallie Sharafat," along with Creative Hospice Care, Inc. and related entities, have agreed to pay $9.2 million to settle allegations of engaging in kickback arrangements with medical directors for patient referrals. This settlement addresses claims that these actions violated the Anti-Kickback Statute and the False Claims Act.
U.S. Attorney Theodore S. Hertzberg emphasized that healthcare decisions should prioritize patient needs over financial interests, stating, “Health care providers who place unlawful personal gain above their duty of care to patients must be held accountable for their dishonesty.”
FBI Atlanta Special Agent in Charge Paul Brown highlighted the importance of maintaining trust in medical decisions: “Patients should not have to wonder if their doctors’ medical decisions are being driven by unlawful inducements.” Kelly Blackmon from the Department of Health and Human Services reiterated this sentiment by noting that such schemes undermine federal healthcare programs' integrity.
Georgia Attorney General Chris Carr stressed the importance of trust in end-of-life care decisions: “Decisions regarding end-of-life care are incredibly difficult and personal, and families must be able to trust the intentions of their chosen providers.”
The investigation began following a whistleblower complaint from a former Creative Hospice employee alleging kickbacks were paid to induce patient referrals. The government claims these payments included monthly stipends and signing bonuses linked to referral numbers.
The settlement resolves three lawsuits filed under the qui tam provisions of the False Claims Act in Georgia's Northern District Court. Whistleblowers involved will receive over $1.5 million from this settlement.
It is important to note that these resolved claims are allegations only, with no determination of liability made.
This case was investigated by multiple agencies including the U.S. Attorney’s Office for the Northern District of Georgia, FBI, Department of Health and Human Services Office of Inspector General, and Georgia’s Medicaid Fraud Division.
Assistant U.S. Attorney Neeli Ben-David and Georgia Senior Assistant Attorney General Sara Vann handled this matter's resolution alongside former Assistant U.S. Attorney Akash Desai.
For more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.
