The owner of an Indian-American laboratory in Atlanta, Minal Patel, 44, is charged with several counts of defrauding Medicare. Patel conspired with patient brokers, telemedicine firms, and call centers to target Medicare beneficiaries as part of a scam involving genetic testing with a reported value of USD 447.54 million.
$447 Million Scam
Federal prosecutors claimed that telemarketing calls misled Medicare beneficiaries into believing that their plan covered pricey cancer genetic tests.
According to the Department of Justice report, Patel paid bribes and kickbacks to patient brokers to get doctors’ orders authorizing the tests from telemedicine companies after Medicare beneficiaries agreed to take the tests. Patel made the patient brokers sign agreements that falsely claimed they were providing legitimate advertising services for LabSolutions in order to conceal the kickbacks, according to a source.
One of the victims reported that a statement from her insurer in 2019 showed charges for $10,700 worth of genetic tests. The fact that Brown’s psychiatrist required her DNA was never disclosed to her, and no one from his office offered advice. She had been a victim of LabSolutions fraud; it was later discovered.
The Punishment
Patel was found guilty on one count of conspiring to commit wire fraud and health care fraud, three counts of health care fraud, one count of conspiring to defraud the United States and to pay and receive illegal health care kickbacks, four counts of doing so, and one count of conspiring to commit money laundering.
On the first conspiracy count, the maximum sentence is 20 years in prison, followed by 10 years for each count of healthcare fraud, five years for the second conspiracy count, 10 years for each kickback count, and 20 years for the third conspiracy count. His sentencing is set for March 7, 2023.
A federal district court judge will decide any sentence after taking the U.S. into account. Guidelines for sentencing and other legal considerations.
