Big boy restaurant fraud case

Criminal charges have not been filed against Hudson. Hudson did not respond to multiple calls at his home or on his cell phone and was not at his house Tuesday when a reporter visited. A woman at his home who identified herself as his big boy restaurant fraud case said he wasn't home and declined comment. The company said it discovered the alleged theft in late December after an internal audit revealed 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.

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. Kazkaz was indicted in April alongside four others, including a physician. The count indictment charged Kazkaz with health care fraud conspiracy, conspiracy to pay and receive health care kickbacks, and paying kickbacks and bribes. The health care fraud conspiracy charge carried the stiffest penalty, a maximum year federal prison sentence.

Then it was millions.

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, 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. It also disclosed findings of an internal investigation to the U. Attorney's Office in Cincinnati last week for potential criminal charges.

Mohamed Kazkaz of Farmington Hills on Tuesday pleaded guilty to leading a health care fraud conspiracy and money laundering three months after he was indicted alongside four others in the latest crackdown on health care fraud in Michigan. In return, prosecutors dropped eight other counts. Reading from a prepared script in court Tuesday, Kazkaz admitted he conspired with others to cheat Medicare by billing for phony psychotherapy sessions and laundering some of the money through Big Boy. District Judge Gershwin Drain in a faint voice. Advisory sentencing guidelines, which the judge can ignore, recommend a sentence of nine to more than 11 years in federal prison. Prosecutors have agreed to seek no more than 10 years.

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.

Restaurante sra smith

Facebook Twitter Email. Publication Date: November 28, First Name. Law Real Estate Authority takes your privacy seriously. Real Estate Authority Commercial. A new worker conducting a internal audit got credit card transaction records from the processing company that did not jibe with Hudson's records. The company says he then hid the depleted cash by allegedly forging internal and vendor statements to show higher costs at store operations. Had Hudson booked tons of bogus assets, such as buying non-existent equipment expenses, Frisch's would have had to restate financials — potentially triggering months of expensive regulatory review. Would you like to subscribe to our Blog? That was the easy part. Frisch's Restaurants Inc. Unbeknownst to colleagues, some years he allegedly embezzled so much he took home more than the CEO. To receive the most current fraud articles direct to your inbox, click the Subscribe button above. Oesterle, a professor at the Ohio State University with expertise in securities law, said Frisch's was doing the right thing by being transparent about the case. Unbeknownst to colleagues, some years he allegedly embezzled so much he took home more than Maier.

Criminal charges have not been filed against Hudson. Hudson did not respond to multiple calls at his home or on his cell phone and was not at his house Tuesday when a reporter visited.

Covid Fraud. Get instant access to the one-stop news source for business lawyers Register Now! Get Your Fraud Fix! Sign up now for free access to this content Enter your details below and select your area s of interest to receive Law Real Estate Authority daily newsletters. An initial review suggested hundreds of thousands of dollars were missing. Medicare needs to pay real medical bills. The scandal comes as Frisch's looks to reignite growth and investors have showed renewed faith in the company. 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. A Dec. But Frisch's officials think all the money might not have been lost gambling. Big Boy lawyer Walter Piszczatowski could not be reached for comment Tuesday. Law Real Estate Authority may contact you in your professional capacity with information about our other products, services and events that we believe may be of interest. Last Name.