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Former LabSolutions CEO Faces Potential Life Sentence for $187M Medicare Fraud Scheme

Federal prosecutors are advocating for a life sentence for the ex-CEO of LabSolutions, following his conviction for orchestrating a complex scheme that fraudulently billed Medicare a staggering $187 million for medically unnecessary genetic testing. Genetic testing has been a buzzword and consequently many companies have exploited Medicare in its name to extract a premium for relatively worthless services and/or unapproved purposes.  Furthermore, in an effort to spread the testing quickly, many companies engaged in impermissible kickbacks.

The conviction, which came after a trial in December, found the ex-CEO guilty on all 10 counts against him, including charges of health care fraud, payment of kickbacks, and conspiracy to commit money laundering.

The government seeks restitution totaling over $187 million. This massive operation ran between 2016 and 2019, involving co-conspirators across the country but primarily based in Palm Beach County, Florida.

In their pursuit of exorbitant profits, the ex-CEO and his associates submitted fraudulent claims totaling $463 million for genetic tests conducted on 61,647 patients. Cases involving Medicare fraud can be prosecuted both civilly and criminally and oftentimes are the product of whistleblowers stepping forward and invoking the False Claims Act. If there is a civil whistleblower here, the individual could stand to receive up to 30% of what the government recovers, which could result in a whistleblower reward in the tens of millions of dollars.