The United States has resolved allegations against two clinical laboratories and their owners involving genetic testing fraud. Metric Lab Services, a clinical lab in Mississippi, Spectrum Diagnostic Labs, a clinical lab in Texas, and two of their owners agreed to pay $5.7 million. The government alleged that they billed Medicare millions of dollars for unnecessary genetic cancer tests. A client of Whistleblower Law Collaborative LLC alerted authorities to the fraudulent scheme.
The government alleged that the labs falsely billed Medicare for unnecessary genetic cancer tests. Metric Labs and Spectrum Labs paid kickbacks to telemarketers to recruit unsuspecting Medicare beneficiaries to sign up for unnecessary testing.
Additionally, the telemarketers paid doctors to order the tests. In many instances, the doctor who requested the genetic cancer testing had never spoken to the patient. The doctors ordered the costly testing because they received a kickback payment for every test they requested.
Our client came forward to alert the government to the significant genetic testing fraud activities. As a result, the government launched a multi-state investigation. That investigation was led by the U.S. Attorney’s Office for the District of New Jersey, the U.S. Department of Justice Civil Division, and the Office of Inspector General of the U.S. Department of Health and Human Services.
On July 21, 2022, the United States Attorney for the District of New Jersey and the U.S. Department of Justice announced that they had resolved the allegations that the two labs paid kickbacks to generate millions of dollars in genetic cancer tests.
In announcing the settlement, Philip R Selinger, the U.S. Attorney for New Jersey, said:
Rather than compete fairly for business, these labs engaged in a brazen kickback scheme to rake in millions of dollars from the Medicare program.
Brian M. Boyton, the Principal Deputy Assistant Attorney General for the Civil Division at the Department of Justice, added: “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”
Whistleblower Law Collaborative LLC attorneys Bob Thomas and Bruce Judge commended the outstanding efforts of the government. Mr. Judge cited the skillful work done by Assistant U.S. Attorney Andrew A. Caffrey, III and former Assistant U.S. Attorney Bernard J. Cooney, both of the District of New Jersey, along with Department of Justice Trial Attorney J. Jennifer Koh. Mr. Judge remarked “over the past several years, there has been a flood of genetic testing fraud schemes across the country. This settlement is an impressive example of the government holding dishonest laboratories and their individual owners accountable.”
If you have information concerning genetic testing fraud or other types of healthcare fraud, we urge you to contact the Whistleblower Law Collaborative to for a free and confidential consultation.