Big boy restaurant fraud case

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, big boy restaurant fraud case, 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.

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.

Big boy restaurant fraud case

Mohammed Kazkaz mixed his love of fraud and his love of burgers into a scheme that maybe neither health care professionals nor fast-food joints have ever seen before. Kazkaz owned and controlled Centre HRW, a psychotherapy agency in Farmington Hills, 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. Kazkaz offered and provided kickbacks and bribes to Ziad Khalel, who was a patient recruiter, as an inducement to refer Medicare beneficiaries to Centre HRW for psychotherapy services, even though such services were medically unnecessary and were never rendered. That was the easy part. Then Kazkaz needed to hide the money. Oh well. Medicare needs to pay real medical bills. Find another investor, Big Boy. Great job by the FBI. As announced Oct.

The health care fraud conspiracy charge carried the stiffest penalty, a maximum year federal prison sentence. If Hudson failed to report all his income to the Internal Revenue Service, the tax agency would be first in line to collect from recouped money.

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.

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.

Big boy restaurant fraud case

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. A civil fight over the money is ongoing. Big Boy lawyer Walter Piszczatowski could not be reached for comment Tuesday.

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Although we LexisNexis rigorously check the accuracy of all information at the time of publishing the blogs, no representations or warranties are expressed or implied as to the blog, its contents and any accompanying materials and it should not be relied upon for acting in specific circumstances. But Frisch's officials think all the money might not have been lost gambling. Facebook Twitter Email. Covid Fraud. At one point, Big Boy executives were in talks about awarding Kazkaz his own franchise, the lawyer said. An initial review suggested hundreds of thousands of dollars were missing. 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. Rajendra Bothra , and three others were acquitted after being accused in a multimillion-dollar case. Frisch's expects theft by some employees. Sales are up for the 12 months ending September and the company is virtually debt-free. Kazkaz, who owns Centre HRW, allegedly bribed Ziad Khalel, a patient recruiter, to refer Medicare patients to his center even when medically unnecessary, according to a complaint by the U. Kazkaz owned and controlled Centre HRW, a psychotherapy agency in Farmington Hills, 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. 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. Confirm Password. Both Kazkaz and Khalel were indicted in January.

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.

Already a subscriber? The FBI remains committed to working with our law enforcement partners to ensure that those who attempt to personally profit through these false claims and money laundering schemes are held accountable. Big Boy lawyer Walter Piszczatowski could not be reached for comment Tuesday. That was the easy part. So I'm trying to figure out how big of an enterprise this is," Drain said. Get Your Fraud Fix! It's unclear how shareholders will react or if regulators might take some action. Securities and Exchange Commission should the agency decide to review or investigate the incident. Kazkaz, who owns Centre HRW, allegedly bribed Ziad Khalel, a patient recruiter, to refer Medicare patients to his center even when medically unnecessary, according to a complaint by the U. Facebook Twitter Email. He started at the company before graduating from the University of Cincinnati and spent his whole career in the accounting department.