Court: Macomb doctor accused of Medicare fraud got $2.6 million in COVID-19 relief funds

A Macomb County osteopath accused of bilking the government out of millions of dollars through fraudulent Medicare billings collected more than $2.6 million in federal COVID-19 relief funds for his clinics in Michigan and elsewhere, according to court documents.

That detail came out Monday in a federal judge’s ruling denying a motion by Dr. Charles Mok II that he be allowed to continue to bill Medicare for patient services at the 26 clinics he operates in Michigan, Florida and six other states through Macomb County-based Allure Medical. 

Mok, through his attorneys, had argued that his staff is at risk of permanent job loss if he cannot bill Medicare. Mok suggested a third party, The Rybar Group, could review all medical claims prior to billing to ensure coding accuracy and compliance.

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In a written order denying the motion, U.S. District Judge Gershwin Drain noted that “both parties agree that Mok received over $2.6 million from the Paycheck Protection Program and Health Care Enforcement Act that can be used for rent, utilities and employee compensation at his clinics.” Those federal programs are designed to help businesses stay afloat during the coronavirus pandemic.

Mok's attorney, Mark Kriger, told the Free Press that he doesn't think it is appropriate to comment on pending cases, and that he believes the appropriate forum is in the court proceedings themselves.

Mok had been ordered to cease billing federal health care programs as part of the bond conditions ordered by federal Magistrate Judge R. Steven Whalen at his April 28 arraignment. The 56-year-old Washington Township doctor is charged with health care fraud and conspiracy to commit health care fraud in a 47-page complaint.

His arrest came days after FBI agents and other federal investigators raided the Allure Medical Spa in Shelby Township.

The complaint alleges Mok conducted a multimillion-dollar insurance fraud scheme involving billings to Medicare from Jan. 1, 2018 to April 7 of this year.

Investigators allege that prior to and during the coronavirus pandemic, Mok defrauded the U.S. government through the submission of false and fraudulent claims to Medicare for payments related to the treatment of varicose veins. The complaint also alleges that he used the COVID-19 pandemic "as an opportunity to bill insurers for vitamin-C infusions fraudulently represented as COVID-19 treatments and preventative measures."

After the pandemic struck, Mok allowed patients to fill waiting rooms at Allure Medical's clinics, sitting next to each other and not adhering to social distancing recommendations aimed at preventing the spread of COVID-19, the complaint alleged.

It also said employees worked without proper personal protective equipment, in close contact with each other and patients. Five employees tested positive for the coronavirus yet continued to work and treat mostly older patients, dozens of them in many cases, according to the complaint.

Mok, the lone defendant in the case, is free on a $10,000 unsecured bond. The bond conditions prohibit him from possessing firearms, billing Medicare for any services at any of his clinics and bans him from performing any in-person nonessential or non-life-supporting procedures where there is a stay-at-home order (Michigan and Florida). He is also prohibited from administering vitamin-C infusions.

A status conference is set for Thursday in U.S. District Court in Detroit.

Contact Christina Hall: chall@freepress.com. Follow her on Twitter: @challreporter.