We trust doctors, nurses, and medical specialists to prioritize our health and well-being at all times. Whether you visit your general practitioner for an annual checkup or need to see a specialist to treat a specific medical condition, you expect them to provide high-quality care that enhances the quality of your life. Unfortunately, there are some cases in which a doctor’s greed or poor job performance can put lives at risk through medical malpractice.

In this article, we discuss one of the worst instances of medical fraud discovered in the United States — the Michigan Hematology-Oncology (MHO) Medicare fraud case. We feel that it’s essential to highlight instances of unscrupulous conduct in the medical industry to prevent similar behavior in the future and protect patients from avoidable harm.

Who Was Dr. Farid Fata & What Was His Role in the Scam?

Dr. Farid Fata was the principal actor behind what has, so far, been the worst case of Medicare fraud in the United States. Prior to the discovery of his unethical acts, Dr. Fata was regarded as one of the most skilled cancer-treating doctors in the Detroit region. In 2003, he opened Michigan Hematology-Oncology, which quickly expanded into a multi-location operation over the following years.

Dr. Fata’s practice boasted an in-house laboratory, radiation treatment facility, and pharmacy. The majority of medical testing was carried out at his facility and drugs were supplied to patients via his practice’s pharmacy. He was known for his aggressive methods of cancer treatment, which deployed chemotherapy drugs at higher rates and concentrations than previously-established methods. Dr. Fata referred to this treatment method as the “European protocol.”

Early Warning Signs Within Fata’s Organization

Long before the true scale of Fata’s operation was revealed, multiple patients and employees tried to bring their misgivings regarding his treatment methods to the public eye. Dr. Fata was sued by a former patient, Maggie Dorsey, in 2007. Dorsey was diagnosed with cancer by Fata in 2007.

Following the diagnosis, Fata applied his usual heavy-handed chemotherapy approach. Dorsey underwent seven months of chemotherapy that left her struggling to walk in the aftermath of her treatment. She later discovered that she had never had cancer in the first place, leading to her medical malpractice lawsuit. Unfortunately, the lawsuit and its result never gained public attention, as the case was settled out of court in 2009.

About a year later, oncology nurse Angela Swantek found herself searching for a job in the Detroit area. Having been impressed by Fata’s sterling reputation, she applied for a role within his practice. After her initial interview, Swantek was encouraged to shadow one of Fata’s nurses during their rounds. At this time, she noticed several breaches of medical treatment protocols, including:

  • Patients receiving chemotherapy treatments and the drug Neulasta on the same day, despite regulations stating that there must be a 24-hour separation between the two
  • Chemo drug Velcrave being applied via IV drip instead of as a syringe injection

Swantek was deeply disturbed by the way patients were treated under Fata’s supervision, noting that “patients [were] being harmed because [of] the therapies they [were] given incorrectly.” She noted that there may have been a financial motive behind the bizarre treatment methods — Fata may have elected to have medications applied via an hour-long IV versus an instantaneous shot because doing so would allow him to bill insurance companies for every minute a patient spent receiving care.

Before her scheduled visit was even up, Swantek left Fata’s practice in disgust. She promptly filed a complaint against the clinic with state regulators, but was notified in 2010 that the investigation had been closed. Department of Licensing and Regulatory Affairs (LARA) deputy director Steve Gobbo claimed that an investigation was carried out, but no actions were taken as a result.

Fata’s Scheme Finally Exposed

In 2013, Dr. Fata’s unethical treatments and Medicare scam would finally come crashing down around him. The beginning of his downfall occurred when he diagnosed patient Monica Flagg with multiple myeloma, a particularly aggressive and malignant form of cancer. Multiple myeloma requires a lifetime of cancer treatments for the patient to even have a chance of survival. Naturally, the patient’s insurance company would be required to foot the bill for every chemotherapy treatment received.

Just a few hours after she went through her first round of chemotherapy, Flagg unfortunately broke her leg in an unrelated accident. Bizarrely, the incident would actually have a positive outcome for her. Normally, Dr. Fata was incredibly protective of his patients, doing everything in his power to ensure that other physicians couldn’t interfere with his treatments. At the time, he was out of the country in Lebanon, so Flagg was treated by another MHO doctor. Flagg’s doctor, Soe Maunglay, was disturbed to learn that she was cancer-free and in good health, minus her leg.

Maunglay Continues to Investigate

Maunglay decided to take a deeper look into Flagg’s records and discovered nothing to indicate that she needed chemotherapy treatments. He realized that, after a few months of treatments, Flagg’s records would likely indicate that she had previously had cancer that miraculously went into remission. Fata’s methods would seem successful, and he would have collected months of insurance payments on his entirely-healthy patient in the meantime.

After his discovery, Maunglay warned Flagg to collect her medical records and never see Fata for treatment again. He had already decided to leave the practice due to dissatisfaction with his role, but was determined that no one else should suffer harm. He discovered additional treatment errors present in Fata’s practice, such as:

  • Intravenous immunoglobulins (IVIG) being prescribed without any medical evidence of their necessity
  • Non-Hodgkin’s lymphoma being incorrectly treated with a targeted cancer drug called rituximab

Following his discoveries, Maunglay consulted with a pair of nurses and convinced them to speak to Fata regarding his use of IVIG treatments. Following the intervention, Fata agreed to reduce his use of that treatment. This furthered Maunglay’s suspicion of Fata. He later stated that “if a physician truly believed his own protocol is helping his patients, he would never discontinue a treatment just because another physician and staff objects.”

Justice Served for Fata’s Victims

Earlier actions against Fata, such as the 2007 lawsuit and nurse Angela Swantek’s complaint, had produced no results against the doctor or his practice. However, in 2013, justice would finally be served. Maunglay brought his suspicions to George Karadsheh, MHO’s practice manager. Karadsheh had been alarmed by the number of physicians abruptly leaving the clinic and proved receptive to Maunglay’s findings. Crucially, Karadsheh had previously uncovered and reported fraud at Detroit’s Lafayette Clinic and reported it via the False Claims Act.

Karadsheh knew exactly what he had to do. Once again, he filed a False Claims Act case against Fata, compiling evidence gathered by himself and Maunglay. Agents from the Federal Bureau of Investigation (FBI) and Department of Health and Human Services showed up on Maunglay’s doorstep days later. Maunglay recalls that they took detailed notes on his findings. Not even a day later, Fata was arrested.

Fata Faces the Criminal System

Thanks to Maunglay and Karadsheh, the evidence against Fata was staggering. The doctor knew that he likely had no chance of successfully fighting the charges he was facing. The maximum penalty for his crimes was a 175-year prison sentence, with deportation to his native country of Lebanon likely in the case of an unexpected early release.

Instead of fighting a losing legal battle, Fata pled guilty to thirteen counts of health care fraud, two counts of money laundering, and one count of conspiracy to pay and receive kickbacks. In return for a guilty plea, the immigration-related charges against him were dropped. Despite his cooperation, U.S. Attorney Barbara McQuade fought vigorously for the harshest possible sentence. She described the situation as “the most egregious case of fraud [she’d] ever seen.” Fata ended up being sentenced to 45 years in prison, which many of his former patients found inadequate to account for the suffering they and their loved ones experienced at his hands.

How Human Bravery Ended Fata’s Immoral Scheme

In the end, Fata’s cruel treatment methods were only ended when his own employees took matters into their own hands and exposed his operation. If not for Soe Maunglay and George Karadsheh, it’s possible that Fata’s scheme may have gone on for many more years without detection. This case stresses the importance of effective oversight and thorough investigations into allegations of medical malpractice.