Indian-origin lab owner charged in $66 million COVID-19 testing scam: How the alleged US healthcare scam worked | Today’s news
An Indian-origin lab owner in the US has been charged with allegedly misappropriating $66.2 million (approx ₹628.7 million) of fraud through billing for 3.8 million COVID-19 tests that his lab allegedly never performed, the US Department of Justice said in a statement.
Rajesh “Raj” Patel, 52, of Schaumburg, Illinois, was charged with five counts of wire fraud. If convicted, he could face up to 20 years in prison in any case.
How the alleged COVID-19 testing scam worked
Between May 2021 and April 2022, Patel allegedly created 3.8 million false negative test results for samples associated with Meridian Medical Staffing Inc. He then billed the US Health Resources and Services Administration (HRSA) uninsured program for the tests, according to a Justice Department statement.
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A federally funded program covered the cost of COVID-19 testing for people without health insurance.
Prosecutors allege that Patel, who was also the chief operating officer of a clinical laboratory in Hillside, Illinois, fabricated negative test results to obtain payments through the federal program.
Court documents show that Patel’s lab processed polymerase chain reaction (PCR) tests during the COVID-19 pandemic.
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Around March 2021, the lab entered into an agreement with Meridian Medical Staffing Inc. Under the agreement, the lab paid Meridian tens of millions of dollars to collect test samples and provide related biological information about alleged patients.
But many of those patients either didn’t exist or never provided samples to Meridian, the Justice Department said.
The lab allegedly submitted $66.2 million in fraudulent claims to the program and received approximately $44.1 million in payments. Patel personally received nearly $28 million from the alleged scheme, the statement added.
US prosecutors say pandemic aid was misused
Assistant Attorney General Colin M McDonald, of the Department of Justice’s fraud division, said in a statement: “This defendant allegedly exploited the global crisis for personal gain, manufacturing hundreds of thousands of COVID-19 tests – and then billing taxpayers for it.
FBI Chicago Special Agent in Charge Ryan Whalen said, “Combating financial fraud and holding accountable those who illegally obtain federal assistance for personal gain remain a top priority for the FBI.
“Pandemic assistance programs were designed to provide a lifeline to vulnerable members of society. Those entrusted with federal health care dollars have an obligation to account fairly and accurately, and the FBI and our partners will stop at nothing to ensure that those who cheat and steal taxpayer dollars for their own purposes face full justice,” Whalen added.
Investigating US Health Care Fraud
The Justice Department said its program has indicted more than 6,200 defendants since 2007 in cases involving more than $45 billion in alleged fraudulent billing to federal health care programs and private insurers.
Patel was charged with five counts of wire fraud. The allegations were not proven in court.
