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Press Release

North Carolina Psychologist Sentenced for Medicaid Fraud Scheme Involving Minors

For Immediate Release
U.S. Attorney's Office, Eastern District of Virginia

RICHMOND, Va. – A Durham, North Carolina, clinical psychologist was sentenced today to 52 months in prison for defrauding Virginia Medicaid of at least $544,067.69 by creating false diagnoses and medical records for Medicaid recipients, mostly minors, and falsely representing to Medicaid that he was providing them mental health services.

According to court documents, Dr. Malik Muhammad, Ph.D., 46, obtained identifying information of Medicaid recipients from a co-conspirator and used that information to bill Virginia Medicaid for outpatient psychotherapy that never actually occurred. Muhammad, a licensed clinical psychologist, hired a co-conspirator to write patient medical records as if Muhammad had performed actual therapy and created inapplicable diagnoses—including depression, anxiety, attention deficit disorder, and post-traumatic stress disorder—to give the appearance of actual treatment. The mostly minor victims were unaware of the false diagnoses Muhammad was inventing and applying to them. Through this fraud scheme, Muhammad defrauded Virginia Medicaid of at least $544,067.69.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services; and Virginia Attorney General Jason Miyares made the announcement after sentencing by U.S. District Judge David J. Novak.

Investigators with the North Carolina Attorney General’s Office Medicaid Fraud Control Unit provided significant assistance. 

Assistant U.S. Attorney Shea Gibbons and Special Assistant U.S. Attorney David Tooker of the Virginia Attorney General’s Office prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-34.

Updated February 1, 2022

Health Care Fraud