The U.S. Department of Justice (DOJ) announced on September 24 that the Chief Operating Officer of Fast Lab Technologies, LLC pleaded guilty to conspiracy to commit healthcare fraud in connection with a nationwide COVID-19 billing scheme that resulted in more than $500 million in fraudulent claims.
According to DOJ, the New York-based laboratory company offered “no cost” COVID-19 tests that could be ordered online and delivered to the patient’s home. The lab would collect the patient’s insurance information and then use that information to submit claims for certain antigen testing, specimen collection, and PCR testing when, in fact, no such tests were performed. Many of these claims were routinely submitted before test kits were even delivered to the patients.
The COO, Hasan “Lucas” Seyhun of Miami, admitted to conspiring with the lab’s Chief Executive Officer and Medical Director, who were both previously charged. Seyhun agreed to pay $4.3 million as a forfeiture monetary judgment, which represents the amount he personally received from the fraudulent scheme.
This case reinforces fundamental compliance principles for labs and other healthcare providers, including the importance of maintaining proper controls to ensure accurate documentation, billing, and coding practices. Moreover, such compliance obligations extend beyond the billing providers and billing and coding staff. Executives, medical directors and operations managers may face scrutiny when billing and coding practices result in fraudulent claims. This case also demonstrates that federal and state authorities are continuing to investigate and prosecute conduct arising from the COVID-19 pandemic and the underlying services provided during that time.
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