By: Sarah Wright | Troy Times | Published February 24, 2026
TROY — Two sleep specialists have agreed to pay more than $760,000 to the United States and state of Michigan to resolve allegations that they violated the False Claims Act.
The specialists are Michel Alkhalil and Peggy Rahal, associated with Troy Sleep Center PLC and Care One Medical Equipment and Supplies, Inc.
Troy Sleep Center PLC provides medical services for persons experiencing sleep disorders, while Care One Medical Equipment and Supplies, Inc. provides medical supplies for individuals experiencing sleep disorders. Both organizations provide services for people enrolled in healthcare programs funded by federal and state governments. Alkhalil and Rahal are doctors and co-owners/members of TSC, while Rahal owns Care One.
“Care One Medical Equipment and Supplies recently resolved a civil regulatory matter with the government related to regulatory billing requirements. There was no determination of liability and no findings related to patient care,” Rahal said via email. “We cooperated fully throughout the process and have strengthened our compliance and oversight procedures to support continued adherence to all regulatory standards. Care One remains committed to providing high-quality service to the patients and communities we serve.”
The settlement was announced Feb. 5 by U.S. Attorney Jerome Gorgon Jr. It resolves several allegations. Officials noted that claims resolved by the settlement are allegations only and there has been no determination of liability.
The first allegation was from Jan. 1, 2018, through Dec. 31, 2024. It is alleged that Alkhalil and Rahal improperly billed federal healthcare programs for sleep studies administered through TSC without properly trained and certified sleep technicians, as required by federal regulations.
Second was that Alkhalil and Rahal obtained $480,000 in Paycheck Protection Program loans while engaged in the alleged improper billing through TSC.
The third was from Jan. 1, 2018, through May 31, 2024, and alleged that Care One improperly billed Medicaid for accessories to positive airway pressure (“PAP”) machines.
According to a statement from the United States Department of Justice, Medicaid does not permit it to be charged separately from the rental rate of PAP machines.
“Billing federal health care programs for services that do not meet required standards compromises patient care and erodes public trust,” said Mario Pinto, special agent in charge at the U.S. Department of Health and Human Services’ Office of Inspector General, in a statement. “Together with our law enforcement partners, we remain steadfast in our commitment to identify and stop fraud that threatens patient well-being and misuses taxpayer dollars.”
Tips and complaints on potential fraud, waste, abuse and mismanagement can be reported to the U.S. Department of Health and Human Services at (800) 447- 8477.