Big boy restaurant fraud case

Mohammed Kazkaz mixed his love of fraud and his love of burgers into a scheme that maybe neither mastram cast care professionals nor fast-food joints have ever seen before. Kazkaz owned and controlled Centre HRW, a psychotherapy agency in Farmington Hills, big boy restaurant fraud case, Michigan whose sole purpose was to submit false and fraudulent claims to Medicare for psychotherapy services that were not provided nor eligible for reimbursement to begin with.

Criminal charges have not been filed against Hudson. Hudson did not respond to multiple calls at his home or on his cell phone and was not at his house Tuesday when a reporter visited. A woman at his home who identified herself as his mother said he wasn't home and declined comment. The company said it discovered the alleged theft in late December after an internal audit revealed discrepancies. It also disclosed findings of an internal investigation to the U. Attorney's Office in Cincinnati last week for potential criminal charges.

Big boy restaurant fraud case

Some of the money has been frozen during an ongoing hunt for cash that has shed light on the finances of a nearly year-old restaurant chain and revealed the latest crackdown on health care fraud in Metro Detroit. Federal court records and a transcript reveal that amid the government's actions, the company is bouncing checks, facing utility shutoffs, defaulting on payments to landlords and has been unable to buy groceries for its franchises. During an April 11 hearing, U. So I'm trying to figure out how big of an enterprise this is," Drain said. There were Big Boys in every neighborhood. But I don't see them very often. That total is down from restaurants in In response to the judge's comments, Big Boy's lawyer filed a sealed list of Big Boy restaurants facing financial issues. Attorney K. Craig Welkener wrote in opposition to Big Boy accessing frozen funds. Big Boy was founded in Glendale, Calif. He is accused of participating in a conspiracy that lasted from January to early this year that the government says involved defrauding Medicare with claims for services that were unnecessary and ineligible for reimbursement. The count indictment charges Kazkaz with health care fraud conspiracy, conspiracy to pay and receive health care kickbacks, and paying kickbacks and bribes. The health care fraud conspiracy charge carries the stiffest penalty , a maximum year federal prison sentence. Kazkaz also is facing six counts of money laundering , each punishable by up to 10 years in prison.

Hudson claimed he gambled it all away, Maier said. Kazkaz pleaded guilty to the fraud and money laundering charges. Maier is skeptical the company will recover any of the missing money, but doesn't believe it will have to restate results.

Frisch's Restaurants Inc. On Tuesday, the nation's largest Big Boy franchisee said in a regulatory filing that it has filed a civil lawsuit against Michael Hudson, its former assistant treasurer and year company veteran, accusing him of embezzlement. The Walnut Hills-based company says it discovered the alleged theft in late December after an internal audit revealed cost discrepancies. It also disclosed findings of an internal investigation to the U. Attorney's Office in Cincinnati last week for potential criminal charges. CEO Craig Maier says the alleged theft has rocked the close-knit company.

Mohamed Kazkaz, 54, will be sentenced Thursday by U. District Judge Gershwin Drain in Detroit, capping what initially appeared to be a mundane Medicare fraud case in a region ravaged by scams involving entrepreneurs and medical professionals who victimized the nation's healthcare program. Prosecutors want Kazkaz sentenced to months in federal prison, saying he cheated Medicare by diverting money that could have been spent providing healthcare services to people nationwide. Attorney Regina McCullough wrote in the government's sentencing memorandum. Kazkaz's lawyer, Kenneth Chadwell, requested a sentence as short as three years in prison, noting his client is a Syrian immigrant with an otherwise clean record, a husband and father of five who has accepted responsibility for committing a nonviolent crime. Federal agents scrambled to recover money from Kazkaz during the investigation and froze money in Big Boy's accounts. The restaurant chain's executives said in April that the moves prompted the company to bounce checks, face utility shutoffs, default on payments to landlords and left restaurant officials unable to buy groceries. At one point, Big Boy executives were in talks about awarding Kazkaz his own franchise, the lawyer said.

Big boy restaurant fraud case

Mohamed Kazkaz of Farmington Hills on Tuesday pleaded guilty to leading a health care fraud conspiracy and money laundering three months after he was indicted alongside four others in the latest crackdown on health care fraud in Michigan. In return, prosecutors dropped eight other counts. Reading from a prepared script in court Tuesday, Kazkaz admitted he conspired with others to cheat Medicare by billing for phony psychotherapy sessions and laundering some of the money through Big Boy. District Judge Gershwin Drain in a faint voice. Advisory sentencing guidelines, which the judge can ignore, recommend a sentence of nine to more than 11 years in federal prison. Prosecutors have agreed to seek no more than 10 years. The entrepreneur sat quietly Tuesday, his head hung low, during the brief court hearing in front of Drain in federal court in Detroit. He was accused of participating in a conspiracy that lasted from January to early this year that the government says involved defrauding Medicare with claims for services that were unnecessary and ineligible for reimbursement.

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Hudson did not respond to multiple calls at his home or on his cell phone and was not at his house Tuesday when a reporter visited. It's unclear how shareholders will react or if regulators might take some action. You wake up in the middle of the night and say 'I can't believe he did this to us — to me. Facebook Twitter Email. Three cars, a truck and van were parked in the driveway Tuesday. Share your feedback to help improve our site! Four others were charged with health care fraud conspiracy in the indictment unsealed Thursday. Kazkaz also is facing six counts of money laundering , each punishable by up to 10 years in prison. Company officials suspect Hudson might have used gambling as a cover to hide money he spent elsewhere. Oops » Read More. Attorney's Office in Cincinnati last week for potential criminal charges. The scandal comes as Frisch's looks to reignite growth and investors have showed renewed faith in the company. Frisch's Restaurants Inc. It also disclosed findings of an internal investigation to the U. It also disclosed findings of an internal investigation to the U.

A Big Boy restaurant in Sandusky, Michigan faces legal consequences for violating COVID state orders by staying open for indoor dining, and will be forced to drop its name and affiliation with its corporate head, Big Boy Restaurant Group. In a statement written online , the restaurant manager, Troy Tank, wrote that the franchise would "continue to serve the community and customer base that we love," despite the new state order. Chief Operating Officer of Big Boy Restaurant Group Bob Scavo disavowed the local restaurant by calling it a "rogue franchise," and said that the corporation had taken the legal steps necessary to terminate its relationship.

Kazkaz's lawyer cited data from comparable criminal cases involving healthcare fraud locally during the last five years and concluded that a sentence of months would be appropriate. Hudson abruptly resigned 5 minutes before the meeting, turned off his computer and left. Still, he noted the company will face extensive questions from at least four regulatory agencies: the U. Immigration Fraud. Unbeknownst to colleagues, some years he allegedly embezzled so much he took home more than the CEO. Related Articles. On Tuesday, the nation's largest Big Boy franchisee said in a regulatory filing that it has filed a civil lawsuit against Michael Hudson, its former assistant treasurer and year company veteran, accusing him of embezzlement. We take your privacy seriously. Medicare needs to pay real medical bills. Frisch's scrambled to investigate. A Dec. Hudson's 3-bedroom, 2-bathroom house is one of many modest split-level and ranch homes built in the s on a narrow, quiet block in Union Township. Dale A. He steadily rose to become assistant treasurer in