Major Healthcare Fraud Cases: $79M Lab Scheme, $47M Kickback Settlement, and $7.9M Home Care Conviction

Headlines of Interest for Companies in Regulated Industries

Texas Lab Owner Charged in $79 Million Medical Fraud

Syed, the owner of BioDX Labs LLC, faces charges for submitting over $79 million in false claims to Medicare and state Medicaid programs. The claims were for respiratory pathogen panel (RPP) tests that he allegedly did not perform and were not medically necessary. He reportedly used a physician’s personal information without consent to submit these claims. Following this, he allegedly laundered the proceeds by transferring funds to foreign bank accounts.

Full DOJ press release here.

Pharmaceutical CEO and Company to Pay $47 Million for Fraud

QOL Medical LLC and its CEO Frederick Cooper agreed to pay $47 million to resolve claims of violating the False Claims Act. QOL allegedly offered kickbacks through free Carbon-13 breath test services to boost claims for their drug, Sucraid. The tests could not accurately diagnose the condition they were intended for, yet they were used to target sales based on test results.

This settlement follows a qui tam action initiated by former employees. More details can be found in the DOJ’s press release here.

Home Health Company Owner Sentenced for $7.9 Million Fraud

Muhammad Zafar, owner of a Michigan home health care company, was sentenced to three years and five months in prison for a $7.9 million healthcare fraud. Zafar conspired with others to pay kickbacks for personal information of Medicare beneficiaries. He used this information to submit false claims for services that were not provided. Zafar pleaded guilty to over $390,000 in false claims. He was an international fugitive for over seven years before being apprehended.

Find the full DOJ press release here.