The owner of Rochester Hills-based Michigan Hematology Oncology Centers and founder of the not-for-profit Swan for Life Cancer Foundation faces charges of healthcare fraud at U.S. District Court today for his role in an alleged $35 million Medicare billing scheme.

Farid Fata of Oakland Township, who in 2005 founded the hematology centers with offices in Bloomfield Township, Troy, Sterling Heights, Clarkston, Lapeer and Oak Park, Mich., allegedly oversaw about $35 million in Medicare billings over a two-year period, and is accused of submitting fraudulent claims for chemotherapy treatments, positron emission tomography (or PET scans), and several cancer and hematology treatments for patients who did not need them.

Federal prosecutors allege Fata falsified and directed others to falsify documents and is responsible for about $25 million of the $35 million submitted by Michigan Hematology to Medicare.

It was not immediately known who is acting as Fata's defense attorney at U.S. District Court today in Detroit.

Prosecutors allege Fata directed that chemotherapy be administered to patients who had other serious medical conditions requiring immediate treatment before permitting them to go to the hospital.

In one instance, a male patient fell down and hit his head while visiting the practice, and Fata allegedly insisted he get chemotherapy before going to the emergency room. The patient later died from his head injury, according to prosecutors.

In another instance, a patient came to MHO with extremely low sodium levels, and Fata allegedly had chemo administered first, before the patient could be hospitalized.

Fata was an honorable mention in Crain's Health Care Heroes 2011 edition, for launching the foundation in 2009 to provide wellness programs and free educational workshops and support services to cancer patients in Oakland and Lapeer counties.

At the time, Fata and two other doctors at Michigan Hematology Oncology reported seeing 400 patients a week and growing to six offices in just six years, including the Karmanos-Crittenton Cancer Center in Rochester.

"Crittenton (Hospital) will fully cooperate with the authorities during their investigation and assist his patients in seeking health care services during this transition," Crittenton Hospital Medical Center said in a statement Tuesday on the criminal case.

Fata is also a member of Crittenton's medical staff, in addition to leasing office space for his company, the hospital statement said.

Patients with questions about their medical records or information in the criminal investigation can call the U.S. attorney's office information line at (888) 702-0553.

"Our first priority is patient care," U.S. Attorney Barbara McQuade said in a statement. "The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered."

"Oakland Township founder of cancer center faces charges in $35 million Medicare billing fraud scheme" originally appeared in Crain's Detroit Business.