A Clinton Township-based physical therapy company has agreed to pay nearly $5 million to settle a federal complaint over claims it fraudulently billed government programs, officials said.
The Team Rehabilitation Services LLC deal was announced on Wednesday by Jerome Gorgon, U.S. Attorney for the Eastern District of Michigan.
“Improperly billing federal healthcare programs depletes valuable resources and erodes public trust,” he said. “This case is further proof that this office will continue to aggressively root out fraud, waste, and abuse in our healthcare system.”
Nick Weber, Team Rehabilitation Services’ CEO, said Thursday the settlement represents his firm “doing the right thing. Upon notification of our billing errors, our executive, compliance, and legal teams worked closely with the government to determine the underlying cause of our billing errors and then immediately moved to…
THE TUTUKA POWER STATION PROCUREMENT FRAUD (ESKOM)
Date: August 29, 2025 Perpetrator: Jessie Phindile Kubheka (Supplier Director)
Case Description: As part of the ongoing “cleaning up” of Eskom, Jessie Phindile Kubheka was sentenced to 12 years (with 5 years suspended) for defrauding the Tutuka Power Station. The case involved a sophisticated procurement syndicate that exploited Eskom’s emergency repair protocols. Kubheka’s company was contracted to deliver three high-specification containers for the power station. Only one container was ever delivered, and even that single unit failed to meet the required safety and technical specifications.
Despite the lack of delivery, Kubheka issued grossly inflated invoices, defrauding the utility of approximately R2.6 million. The Middelburg Specialised Commercial Crimes Court ordered Kubheka to repay the full amount. This case is significant because it marks a shift in Eskom’s strategy toward “naming and shaming” suppliers and pursuing full asset recovery. It serves as a stark warning to contractors that the 2026 climate of “Zero Tolerance” for state-owned enterprise (SOE) fraud is backed by active judicial enforcement.
Link to Original: Eskom Official – Tutuka Fraud Sentencing