An Indian-origin laboratory owner in the US has been accused of running a $66.2 million ( ₹ 628.7 crore) fraud scheme by allegedly billing for 3.8 lakh COVID-19 tests that his lab never conducted, the department of justice said in a statement.
If convicted, he could face up to 20 years in prison on each count.
Rajesh “Raj” Patel, 52, from Schaumburg, Illinois , has been charged with five counts of wire fraud.
What is the case?
Between May 2021 and April 2022, Patel, co-owner of a clinical laboratory in Illinois, allegedly created 3.8 lakh fake negative test results for samples linked to Meridian Medical Staffing Inc. The programme was federally funded and covered the cost of COVID-19 tests for people without health insurance. Court documents show that Patel’s laboratory processed polymerase chain reaction (PCR) tests during the COVID-19 pandemic. Around March 2021, the laboratory entered into an agreement with Meridian Medical Staffing Inc. Patel’s laboratory allegedly submitted about $66.2 million in fraudulent claims to the programme and received approximately $44.1 million in payments. Patel personally obtained nearly $28 million from the scheme, the statement added. Assistant attorney general Colin M McDonald of the justice department’s fraud division said in a statement, “This defendant allegedly exploited a global crisis for personal gain, fabricating hundreds of thousands of COVID-19 tests – then billing the taxpayer for it. The justice department said its programme has charged more than 6,200 defendants since 2007 in cases involving over $45 billion in alleged fraudulent billing to federal healthcare programmes and private insurers.
Prosecutors say that Patel, who was also the chief operating officer of a clinical laboratory in Illinois’ Hillside fabricated negative test results to claim payments from the federal programme. Under the arrangement, the lab paid Meridian tens of millions of dollars to collect test samples and provide related biological information about the purported patients. “Pandemic assistance programs were designed to provide a lifeline to vulnerable members of society. Those who are entrusted with federal healthcare dollars have a responsibility to bill honestly and accurately, and the FBI and our partners will stop at nothing to ensure that those who deceive and steal taxpayer dollars for their own purposes face full justice,” Whalen added.
He then billed the US Health Resources and Services Administration (HRSA) Uninsured Program for these tests, according to the statement. However, many of these patients either did not exist or had never provided samples to Meridian, the statement said. FBI Chicago special agent in charge Ryan Whalen said, “Fighting financial fraud and holding accountable those who unlawfully obtain federal assistance for personal profit remains a top priority for the FBI.
