Federal News
Eastern District of Missouri Resolves False Claims Settlement
March 09, 2026
The U.S. Attorney's Office for the Eastern District of Missouri announced a $360,000 civil settlement with psychiatrist Dr. Shazia Malik to resolve allegations of submitting false claims to Medicare and Missouri Medicaid for psychotherapy services not rendered. This settlement follows Dr. Malik's December 2025 guilty plea for making false statements related to healthcare matters. The case involved coordinated investigations by multiple federal and state agencies, including the HHS Office of Inspector General, FBI, and Missouri Medicaid Fraud Control Unit, underscoring ongoing enforcement efforts to protect the integrity of federal healthcare programs.
- Why this matters: Procurement professionals and contractors in healthcare services should be aware of heightened scrutiny and enforcement around billing practices for federal health programs.
- Agencies and providers must ensure compliance with Medicare and Medicaid billing regulations to avoid legal and financial penalties.
- This case highlights the importance of internal controls and accurate documentation in healthcare service delivery and claims submission.
- Organizations involved in federal healthcare contracts may face increased oversight and should evaluate their compliance programs accordingly.
Health care professionals who knowingly submit false claims to federal health care programs undermine the financial integrity of those taxpayer-funded programs.
— Linda T. Hanley, Special Agent in Charge, HHS-OIG
Agencies
U.S. Attorney's Office for the Eastern District of Missouri, U.S. Department of Health and Human Services Office of Inspector General, Missouri Attorney Generalβs Medicaid Fraud Control Unit, Federal Bureau of Investigation, Missouri State Board of Registration for the Healing Arts