Branford Mental Health Clinic Owner Gets 2-Year Prison Term

BRANFORD, CT —A Branford man who ran a mental health center in both Branford and East Haven was sentenced Monday to serve two years in federal prison after pleading guilty in March to health care fraud for billing Medicaid for patient psychotherapy that was not delivered, federal prosecutors said.

Wali Muhammad, 45, must also serve three years of supervised release and pay more than half a million dollars in restitution for defrauding Connecticut’s Medicaid Program.

According to the US Attorney's office, based on court documents and statements made in court, from 2010 to 2019 Muhammad owned and operated Happy Family Clinical Services, a mental health and social services agency. Happy Family's office was located in East Haven and Branford, before moving to New Haven in 2014.

From 2013 through 2019, Muhammad "engaged in a scheme to defraud the Connecticut Medicaid Program by submitting fraudulent claims for psychotherapy services that were purportedly provided to Medicaid clients," prosecutors said.

According to court documents, he billed for therapy sessions that never happened, and, federal prosecutors said, he also submitted those claims using the names of licensed clinical social workers and other licensed health care providers who "purportedly worked" for Happy Family noting they'd done the therapy sessions, "when, in fact, the licensed providers had not personally rendered the services, had not supervised the services that were billed, and were unaware that Muhammad was billing or causing the services to be billed as if the providers had personally rendered the services."

And, the U.S. Attorney said, when mental health services were provided, "they were usually rendered by unlicensed individuals and billed as licensed psychotherapy."

Muhammad, who is released on bond, is required to report to prison on Sept. 27.

This case was investigated by U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the Medicaid Fraud Control Unit (MFCU) of the Connecticut Chief State’s Attorney’s Office. Acting U.S. Attorney Boyle also thanked the Connecticut Attorney General’s Office, the Connecticut Department of Social Services, and the Connecticut Department of Mental Health and Addiction Services for their assistance in the investigation.

The matter was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.

The U.S. Attorney’s Office, Chief State’s Attorney’s Office, and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Federal Bureau of Investigation. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.