Dearborn Heights Business Owner Pleads Guilty in $1.9M Healthcare Fraud Scheme

Rabih Hamdan admitted to submitting false claims for prescription drugs that were medically unnecessary or never dispensed.

Apr. 9, 2026 at 11:39pm

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An extreme close-up photograph of a stack of prescription pill bottles against a pitch-black background, lit by a harsh, direct camera flash, conceptually illustrating the stark reality of healthcare fraud.A recent wave of healthcare fraud schemes in Michigan has exposed vulnerabilities in the system and the need for stronger oversight and accountability.Dearborn Heights Today

A business owner from Dearborn Heights, Michigan, pleaded guilty this week to conspiring to commit healthcare fraud, resulting in a $1.9 million loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. Rabih Hamdan, 41, admitted to creating and operating a scheme to submit false and fraudulent claims for prescription drugs that were medically unnecessary or not actually dispensed.

Why it matters

This case is part of the federal government's ongoing crackdown on healthcare fraud in Michigan, which has been a major focus for law enforcement agencies like the FBI and HHS-OIG. Schemes like this one can have a significant financial impact on public and private insurance programs, as well as undermine public trust in the healthcare system.

The details

Hamdan used the fraud proceeds for his personal use and to benefit others. In total, Hamdan and his coconspirators submitted false and fraudulent claims totaling at least $1.9 million over five years. In many instances, his pharmacy lacked the inventory to dispense these drugs but billed the health care insurers as though they had been dispensed. The medications were never ordered by a physician.

  • Hamdan pleaded guilty to the charges this week.
  • The fraudulent scheme took place over a five-year period.

The players

Rabih Hamdan

A 41-year-old business owner from Dearborn Heights, Michigan, who pleaded guilty to conspiring to commit healthcare fraud.

Jerome F. Gorgon, Jr.

The United States Attorney who announced Hamdan's guilty plea.

Mario M. Pinto

The Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

Jennifer Runyan

The Special Agent in Charge of the Federal Bureau of Investigation's Detroit Field Office.

Matthew F. Leitman

The United States District Judge who will sentence Hamdan.

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What they’re saying

“Michigan man pleads guilty to defrauding Medicare, Medicaid, and private insurance for nearly $2 million… FBI investigated this case with our HHS and DOJ partners as part of our nationwide fraud takedown. More to come.”

— Kash Patel, FBI Director

“CASE UPDATE from @FBIDetroit: Michigan Business Owner Convicted of $1.9M Medicare, Medicaid, and Private Insurer Fraud Scheme Rabih Hamdan, 41, admitted to creating and operating a scheme to submit false and fraudulent claims for prescription drugs that were medically…”

— FBI

What’s next

Sentencing before United States District Judge Matthew F. Leitman will be set after a presentence report is prepared. Hamdan faces a possible maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.

The takeaway

This case highlights the ongoing efforts by federal law enforcement agencies to crack down on healthcare fraud schemes that can have a significant financial impact on public and private insurance programs. It also underscores the importance of maintaining integrity and accountability in the healthcare system to protect patients and taxpayers.