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Monday, February 9, 2026

Feds: Settlement reached with Troy sleep specialists accused of violating False Claims Act - The Oakland Press

A civil settlement has been reached with a Troy sleep clinic, a medical equipment company and two physicians accused of violating the False Claims Act.

As announced recently by United States Attorney Jerome Gorgon Jr., Troy Sleep Center PLC, Care One Medical Equipment and Supplies, Inc., Michel Alkhalil, MD and Peggy Rahal, MD have agreed to pay $763,954.74 to the United States and the State of Michigan to resolve allegations that they violated the False Claims Act.

The allegations, as stated in a news release from the US Attorney’s Office – Eastern District of Michigan::

• From Jan. 1, 2018 through Dec. 31, 2024 Alkhalil and Rahal improperly billed federal healthcare programs for sleep studies administered without properly-trained and certified sleep technicians, as required by federal regulations

• Alkhalil and Rahal reportedly obtained $480,000 in Paycheck Protection Program loans associated with the alleged improper billing

• From Jan. 1, 2018 through May 31, 2024, Care One improperly billed Medicaid for PAP machine accessories; Medicaid prohibits such charges to be billed separately from PAP machine rental rates

“Billing federal health care programs for services that do not meet required standards compromises patient care and erodes public trust,” Mario Pinto, special agent in charge at the US Department of Health and Human Services Office of Inspector General stated in the news release. “Together with our law enforcement partners, we remain steadfast in our...



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