Mahlega Abdsharafat, known as "Mallie Sharafat," along with Creative Hospice Care, Inc. and its affiliated companies, have agreed to pay $9.2 million to settle allegations of engaging in kickback arrangements with medical directors. These actions allegedly led to referrals of hospice patients to Creative Hospice, violating the Anti-Kickback Statute and the False Claims Act.
U.S. Attorney Theodore S. Hertzberg stated, “A physician’s health care decision should be based solely on the needs of the patient rather than the physician’s financial interests.” He emphasized accountability for those who prioritize personal gain over patient care.
FBI Atlanta Special Agent in Charge Paul Brown added, “Patients should not have to wonder if their doctors’ medical decisions are being driven by unlawful inducements.” He affirmed that accountability would be pursued for individuals and companies involved in such schemes.
Kelly Blackmon from the Department of Health and Human Services' Office of Inspector General remarked that participation in kickback schemes undermines federal health care programs' integrity. She noted that this settlement underscores their commitment to holding accountable those prioritizing profit over legitimate medical services.
Georgia Attorney General Chris Carr commented on the importance of trust in end-of-life care decisions: “Those who instead take advantage of the system for their own personal gain will be held accountable.”
The investigation began after a former employee filed a whistleblower complaint alleging that Creative Hospice paid kickbacks to induce patient referrals. Alleged incentives included monthly stipends and signing bonuses tied to referral numbers. Two additional whistleblower complaints were filed with similar claims.
The government alleges these practices violated both the Anti-Kickback Statute and resulted in false claims under the False Claims Act (FCA). The settlement resolves three lawsuits filed under FCA's qui tam provisions in Georgia's Northern District Court.
Whistleblowers or "relators" can file suits for false claims on behalf of the United States and share any recovery obtained by the government. Relators from these cases received over $1.5 million from this settlement.
The settled claims remain allegations without any liability determination.
The case was investigated by several agencies including the U.S. Attorney’s Office for Georgia's Northern District, FBI, HHS-OIG, and Georgia Attorney General’s Medicaid Fraud Division. Assistant U.S. Attorney Neeli Ben-David and Georgia Senior Assistant Attorney General Sara Vann handled it; former Assistant U.S. Attorney Akash Desai also contributed.
For more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280; visit http://www.justice.gov/usao-ndga online.