Detroit area doctor charged with fraud after perscribing 2.2 million doses of painkillers

Statute of Justice | Stock photo by William Cho/pixabay

Francisco Patino, M.D., a physician from the Detroit area who was the top prescriber of oxycodone 30 mg in Michigan was charged in a superseding indictment unsealed today. He was allegedly involved in a health care fraud and money laundering scheme that brought in more than $120 million in illicit funds. As part of this plot, he distributed more than the alleged medically unnecessary distribution of over 2.2 million dosage units of controlled substances that were medically unnecessary injections and resulted in patient harm.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s Chicago Regional Office made the announcement this afternoon.

Patinowas charged in the superseding indictment with one count of conspiracy to commit health care fraud and wire fraud, one count of conspiracy to commit money laundering and one count of money laundering. These charges are in addition to the two counts of health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks that was charged in the initial indictment. The case is pending before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Trial is scheduled to begin on April 7 before Judge Hood.

The superseding indictment alleges the laundering of the proceeds of the health care fraud scheme to falsely portray the defendant as a legitimate doctor through the publication of a diet book and plan described as the “next Atkins,” paid-for appearances on a nationally syndicated television show, and the sponsorship of boxers, cagefighters and prominent Ultimate Fighting Championship world champions and hall of famers.     

Patino owned, controlled and operated numerous pain clinics and laboratories in Michigan – including Global Quality Inc., RenAMI, FDRS and Patino Laboratories – and was the top prescriber of Oxycodone 30 mg in Michigan from 2016 to 2017. From 2008 until his arrest, Patino induced patients to come to his clinics by offering unnecessary prescriptions for addictive opioids, of which he ultimately prescribed over 2.2 million dosage units of medically unnecessary controlled substances, including fentanyl, oxycodone and oxymorphone. Patino prescribed these opioids to Medicare beneficiaries, some of whom were addicted to narcotics.

According the indictment, Patino forced patients to submit to unnecessary and sometimes painful back injections and other procedures in exchange for the opioid prescriptions as part of a scheme to defraud Medicare of over $120 million.  The superseding indictment alleges that Patino persisted with these unlawful practices even after Medicare informed him that the injections violated Medicare’s rules and after Patino entered into a consent order with the State of Michigan that his prescription of opioids “constitute[d] a violation of the public health code.”

Patino also ordered unnecessary urine drug testing in exchange for illegal kickbacks, the superseding indictment alleges. Patino was aware that his ownership structure and kickbacks were a violation of law and authored emails acknowledging that such ownership constituted  a “violation of the Stark and Anti-Kickback laws” and attempted to conceal and disguise the ownership structure and scheme in order to keep himself “out of federal prison & having all our assets seized to pay a $15 million fine.”

Patino also allegedly conspired to launder money in connection with the creation and promotion of the “Patino Diet” plan, which Patino described to others as the “next Atkins diet.”  In order to conceal and disguise his illegal health care fraud scheme, Patino allegedly paid for the authorship and publication of a book touting the diet plan, entitled The Age of Globesity, and paid hundreds of thousands of dollars in order to promote the diet plan and appear as the exclusive medical expert on a nationally syndicated television show.

In addition to concealing the scheme by paying money to falsely portray himself as a media personality and a legitimate physician, the superseding indictment alleges, that Patino laundered the healthcare fraud and kickback money by entering into sham contracts or employment relationships to pay others on his behalf to sponsor boxers, mixed martial artists and UFC combatants.

The charges against Patino are related to a broader investigation into the Tri-County Network of pain clinics in Michigan and Ohio, which involves over $300 million in alleged Medicare fraud and the alleged distribution of over 6.6 million dosage units of controlled substances.  In connection with the investigation, 22 defendants, including 12 physicians, have previously pleaded guilty or been found guilty at trial. 

Huge drug bust on Rutherford

The Detroit Police Department, along with agents from the several different state and federal agencies, announced a series of indictments that will bring to justice members of a violent, armed drug gang members that operated on Rutherford Street. This investigation is the result of an on-going partnership between local, state, and federal law enforcement, which is commonly known as Detroit One.

The indictment unsealed today charges three brothers, Mohamed, Abed, and Fouad Faraj, with distributing marijuana and prescription pills on the 6800 block of Rutherford Street and the greater Warrendale neighborhood in the city of Detroit. The criminal enterprise led by the Faraj brothers employed numerous teenagers and young men to act as their street level distributors. These young workers regularly had access to firearms supplied by the leaders and used arson as a tactic to create stash houses and to further the enterprise’s narcotics distribution activities.

Among those charged today are:

• Mohamed Faraj, 29, of Dearborn Heights, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and use a telecommunications device in furtherance of narcotics trafficking;
• Abed Faraj, 38, of Detroit, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, and possession of firearms in furtherance of narcotics trafficking;
• Fouad Faraj, 43, of Dearborn Heights, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, and possession of firearms in furtherance of narcotics trafficking;
• Mohammed Abdul Alhakami, 22, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and possession of firearms in furtherance of narcotics trafficking;
• Ali Al-Hisnawi, 20, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; and
• Adnan Bazzi, 28, of Dearborn, charged with conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and felon in possession of a firearm.

“Detroit One is bringing a unified focus to arresting violent offenders in Detroit," U.S. Attorney Barbara McQuade explained in a statement. "Dismantling violent drug gangs will help restore peace in our neighborhoods."

“We know that illegal narcotics and firearms are a major threat to the safety of our citizens and to law enforcement officers,” added Acting Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “Today’s operations and arrest warrants highlight ATF’s and our law enforcement partners’ effort to remove armed violent drug dealers from our streets. We are committed to reducing violent crime and this case emphasizes a repetitive problem of illegal narcotics traffickers willing to use and carry firearms to protect their drug proceeds.”

“This is the perfect example of law enforcement teamwork,” said Chief James E. Craig. “Working with our local, state, federal law enforcement agencies has and will continue to enhance our crime-fighting efforts in providing a safe environment for visitors and residents of the city of Detroit.”

Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working cooperatively, local, state, and federal law enforcement agencies are maximizing their ability to identify and arrest the individuals and groups committing violent crime.

In this case, investigators were able to share information and resources to identify the leaders and key members of this organization, leading to charges against six individuals in federal court. The case was initiated by the Comprehensive Violence Reduction Partnership, consisting of representatives of the Detroit Police Department, Michigan State Police, Michigan Department of Corrections, and ATF and assisted by the Federal Bureau of Investigation, Homeland Security Investigations, and Internal Revenue Service.

Update @ 7:14 p.m. I was interviewed about this story by WXYZ-TV this evening and gave background information about narcotics trafficking in Warrendale. More 

18 Individuals Face Drug Charges

An indictment charging eighteen defendants with conspiracy to distribute cocaine and marijuana has been unsealed, U.S. Attorney Barbara L. McQuade announced yesterday. Ms. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge of the Detroit office of the Federal Bureau of Investigation; Robert Corso, Special Agent in Charge of the Drug Enforcement Administration; and Chief Ralph Godbee, Detroit Police Department.

This indictment charges eighteen defendants with conspiring to distribute cocaine and marijuana in Detroit over the past eleven years. All eighteen are alleged to be members of a national drug trafficking organization.

The eighteen defendants named in this indictment are:

• Shaun Devon Askew, a/k/a “Dot,” 28, of Detroit;
• Terrell Raynard Clark, 23, of Detroit
• Anthony Bernarde Edwards, a/k/a “Ant” and “Mick,” 40, of Southfield;
• Erika Royce Flowers, a/k/a “E,” 29, of Detroit;
• Thebera Shlanda Flowers, 47, of Detroit;
• Geoffrey Lamar Hightower, a/k/a “Chief,” 40, of Wayne;
• Carl Lee Jones, a/k/a “Pookie,” 30, of Farmington Hills;
• John Lighting, III, a/k/a “J-Rock,” 29, of Detroit;
• Malcolm Martines Long, a/k/a “Black,” 38, of Macomb Township;
• Terrence Lynn Pritchett, a/k/a “Cowboy” and “C-Bo,” 40, of Detroit;
• Johnny Richards, Jr., 43, of Roseville;
• Isaac Johnson Sheppard, 30, of Detroit;
• Daryl Keith Sewell, a/k/a “D-Nice,” 43, of Arizona;
• Kendrah Smartt, a/k/a “Old Girl,” 46, of Colorado;
• Dennis Cornelius Tate, a/k/a “Deezy” and “Terrence,” 36, of Belleville;
• Jaami Townsend, a/k/a “Jam,” 33, of Plymouth;
• Clarence Williamson, Jr., a/k/a “Dawg” and “Junior,” 48, of Southfield; and
• Denise Darrine Williamson, a/k/a “Neecey,” 42, of Detroit;.

Mr. Sheppard is in custody in Detroit, while Ms. Smartt is in custody in Nebraska.

“We need to find new ways to address gun, drug, and violent crimes,” Ms. McQuade said. “Our law enforcement agencies are working together to use our resources in strategic ways.”

“The FBI remains committed to working with our law enforcement partners, particularly through our Violent Gang Task Force, and working with prosecutors to aggressively investigate drug dealing organizations,” Mr. Arena explained.

Mr. Corso added, “The arrests that stemmed from this investigation are strong examples of the positive results that can be achieved when state, local and federal law enforcement agencies work together to fight drug trafficking. The DEA will continue to work with our partners to make our community safer by focusing on dismantling violent drug organizations.”

The most serious charge in the indictment, conspiracy to distribute more than five kilograms of powder cocaine and more than 1,000 kilograms of marijuana, carries a penalty of 10 years to life imprisonment.

An indictment is a charging document and not evidence of guilt. Each and every defendant is presumed to be innocent. The case is being prosecuted by Assistant U.S. Attorney David Portelli.

Detroit Police Make $1 Million Drug Bust

The Detroit Police Department announced a major narcotics arrest this afternoon, taking more than $1 million in illicit drugs off the streets of Detroit. While it did not happen in the Warrendale neighborhood, it is still a significant development for all Detroiters. This arrest was made possible by the combined efforts by the members of the US Immigration and Customs Enforcement (ICE) Investigations, Detroit Police Department, and Drug Enforcement Administration. These law enforcement officers are assigned to Detroit Border Enforcement Security Task Force (B.E.S.T.).

A B.E.S.T. member received information that a package containing several wooden hangers had suspected drugs hidden inside of them and was to be delivered to a party store located on W. Grand Blvd. The task force members intercepted the parcel that was about to be delivered on Tuesday.

The task force then set up surveillance and, once the package was delivered, a search warrant was executed to retrieve the parcel. Officers seized the package, along with brown paperbags containing 300 hydrocodone pills and a vial of 120 xanax pills with an estimate street value of $4,260. Officers also recovered additional heroin from inside of the business, making it a total of 799.5 grams of heroin with a street value of approximately $1.4 million

They also recovered over $18,000 in suspected drug proceeds, six hand guns, two long guns, as well as two vehicles (2008 Chevy Suburban and 2010 Audi). Three suspects have been identified and not-in-custody warrants will be issued. Since January, 2010, the Detroit Police has confiscated 23,213 grams of heroin, with an estimate street value of over $ 41 million.

"Due to the support and collaborative efforts with ICE and the DEA, we will continue to rid our neighborhoods of these drugs which can be linked to the majority of violence within our communities,” Chief Ralph Godbee said in a written statement.

WCO Mayoral Forum

The Warrendale Community Organization will host a forum for the various Detroit Mayoral candidates on Saturday, January 17 from noon until 3 p.m. This forum will happen in the gymnasium at St. Thomas Aquinas Church, which is located at 5780 Evergreen in Detroit's Warrendale neighborhood.

The first hour will be an informal meet and greet, where residents will have a chance to talk with all of the candidates on a casual basis. There will then be a moderated discussion of the issues beginning promptly at 1 p.m.

In the interest of time, the executive board of the WCO decided to only invite five of the eighteen candidates. A vote was taken at the WCO's annual holiday as to which five candidates should be invited. The membership decided to invite:

• Dave Bing;
• Ken Cockrel, Jr.
• Warren Evans
• Freman Hendrix
• Nicholas Hood, III

Each of the candidates will be asked a series of questions that were prepared by a committee of WCO members. After that, the floor will be opened for questions from attendees.

This forum is free and open to the public.