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Government Actions

Lab Owner Sentenced for $463M Genetic Testing Scheme

On August 18, 2023, a press release was issued by the U.S. Department of Justice, Office of Public Affairs. The government action information is listed below:

A
Georgia man was sentenced today to 27 years in prison for his role in a scheme
to defraud Medicare by submitting over $463 million in genetic and other
laboratory tests that patients did not need, and that were procured through the
payment of kickbacks and bribes.

According to court documents,
Minal Patel, 44, of Atlanta, owned LabSolutions LLC (LabSolutions), a lab
enrolled with Medicare that performed sophisticated genetic tests. Patel
conspired with patient brokers, telemedicine companies, and call centers to target
Medicare beneficiaries with telemarketing calls falsely stating that Medicare
covered expensive cancer genetic tests. After the Medicare beneficiaries agreed
to take a test, Patel paid kickbacks and bribes to patient brokers to obtain
signed doctors’ orders authorizing the tests from telemedicine companies. To
conceal the kickbacks and bribes, Patel required patient brokers to sign sham
contracts that falsely stated that the brokers were performing legitimate
advertising services for LabSolutions, when, as Patel well knew, the brokers
were deceptively marketing to Medicare beneficiaries and paying kickbacks and
bribes to telemedicine companies for genetic testing prescriptions.

“In one of the largest genetic
testing fraud cases ever tried to verdict, today’s sentence makes clear that
the Department will seek justice for those who put profits above patient care,
including owners and executives,” said Acting Assistant Attorney General Nicole
M. Argentieri of the Justice Department’s Criminal Division. “The sentence also
demonstrates the Criminal Division’s ongoing commitment to fighting
telemedicine and genetic testing fraud that exploits patients and drains health
care benefit programs.”

Patel knew the telemedicine
doctors robo-signed prescriptions for expensive genetic testing even though
they were not treating the beneficiaries, often did not even speak with them,
and made no evaluation of medical necessity. From July 2016 through August
2019, LabSolutions submitted more than $463 million in claims to Medicare,
including for thousands of medically unnecessary genetic tests, of which
Medicare paid over $187 million. In that timeframe, Patel personally received
over $21 million from Medicare in connection with the fraud.

“Deception, kickbacks, and
bribes have no place in the provision of legitimate genetic testing and
telemedicine services to patients who need them,” said Special Agent in Charge
Jeffrey B. Veltri of the FBI Miami Field Office. “Patel bilked hundreds of millions
of dollars from Medicare through a complex testing fraud scheme. He is now
paying the price for this crime. The FBI commends the Department of Health and
Human Services Office of Inspector General (HHS-OIG) for their close
partnership and diligence working this joint investigation. Our message to
those who commit Medicare fraud and steal from U.S. taxpayers is clear: you
will be caught and you will be held accountable.”

“This outcome sends a strong
message that HHS-OIG will not tolerate those who exploit Medicare patients and
who pay kickbacks to providers to prescribe medically unnecessary genetic
tests, all for illegitimate financial gain,” said Acting Special Agent in
Charge Julie Rivera of the HHS-OIG. “Our commitment to safeguarding the
integrity of the Medicare program remains unwavering.”

The FBI and HHS-OIG investigated
the case. The case is final. 

For more details go to: https://www.justice.gov/opa/pr/lab-owner-sentenced-463m-genetic-testing-scheme