Pharmaceutical CEO in $134M Fraud Scheme Gets Home Confinement

A man known for loud parties and splashy Instagram posts is spending the night in federal detention after prosecutors alleged he paid for it all by bilking others.

Federal investigators swarmed the front of a $2 million home in Houston’s Afton Oaks neighborhood before dawn on Tuesday and arrested 56-year-old Mohamed Mokbel. The suspect was wearing the same Fendi shirt that’s on his Instagram profile picture. He walked past his Bentley with his name on the vanity plate and his Mercedes next to it. The red Ferrari that’s been the talk of the neighborhood was nowhere to be seen.

Federal prosecutors said Mokbel was able to afford his lavish lifestyle by defrauding $134 million from Medicare funds.

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Eyewitness News captured the arrest of Mokbel at his home where multiple law enforcement vehicles, including a SWAT vehicle, were staged in front of his home on Devon Street near Newcastle. “The Ferrari guy?” exclaimed neighbor Peter Hempel in shock. “No way!”

On his Instagram page, Mokbel proudly posed in front of his home with his red Ferrari. He also posed inside his home, at certain points in his bathtub. There are photos of him on boats, in airplanes, and the fancy nightclubs where bottle service can run in the thousands. One thing he never did was talk to his neighbors.

“I have had multiple complaints about those people for like two years. We have called the cops on them like multiple times,” said Hemphel.

Records show neighbors always called about loud noises and late night partying. But the feds don’t arrest people for being a nuisance. These charges are much more serious. According to the U.S. Attorney’s office, Mokbel is the CEO of 4M Pharmaceuticals, which is the parent company of several retail pharmacies in Houston, Fort Worth and elsewhere. He and 62-year-old Fathy Elsafty, his accountant, face charges of conspiracy to commit health care fraud relating to a pharmacy fraud scheme…   ABC13 News


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