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‘Unrepentant fraudster’ immigrant Mashiyat Rashid jailed in $132M scheme
A federal judge revoked the bond of a West Bloomfield Township immigrant accused of masterminding a $132 million health care fraud scheme — the largest in Metro Detroit history — for contacting witnesses and a co-defendant in the case.
The move by U.S. District Judge Denise Page Hood comes two months after Mashiyat Rashid, 37, was released on $500,000 bond, ordered to wear a GPS tether and live under house arrest.
His jailing is a stark reversal of fortune for Rashid, who prosecutors say blew money from the $132 million scheme on a $7 million mansion in Franklin and enjoyed a luxury lifestyle that included an orange Lamborghini, a cherry-red Ferrari, luxury watches and private jet flights. He was caught with a duffel bag stuffed with $500,000.
Despite strict bond conditions that barred him from using a cellphone, Rashid used phones to arrange secret meetings with a co-defendant in a bathroom, contacted witnesses and enlisted the help of his personal trainer to meet with others, prosecutors wrote.
“Mashiyat Rashid is an unrepentant fraudster,” Justice Department trial attorney Jacob Foster wrote in the filing. “Rashid has repeatedly violated the conditions. The court should revoke Rashid’s bond and issue a warrant.”
Rashid's bond was revoked the next day and he was jailed, according to court records.
While free on bond, Rashid violated bond by using a land-line phone and his wife’s cellphone to make 137 calls. Rashid also contacted former employees, government witnesses and a co-defendant.
Rashid faces life in federal prison if he is convicted of the charges, which include health fraud conspiracy, money laundering and receiving kickbacks.
Rashid orchestrated a conspiracy that dates to 2008 involving six others and a web of companies controlled by him, prosecutors allege.
The companies included Tri-County Physicians and National Laboratories. FBI agents raided the building, among other locations.
Prosecutors say the conspiracy involved recruiting homeless people as patients, sending phony bills to Medicare, subjecting drug addicts to unnecessary back injections and prescribing powerful pain medication that ended up being sold on the street.
The conspiracy generated so much money that Rashid withdrew $500,000 from a bank this summer and stuffed the cash in a duffel bag, the government said. A surveillance team of federal agents watched him enter and leave the bank.
http://www.detroitnews.com/story/news/local/detroit-city/2017/10/20/alleged-fraudster-jailed-scheme/106836056/

