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Another owner of the lab also received kickbacks from third parties for referring individuals to those parties totaling $441,646.

The federal government alleged Phamatech paid a clinic to refer it drug testing business, violating the federal Anti-Kickback Statute and the False Claims Act.

Last month the agency said it had begun examining Medicare claims data to look for potential fraud in ordering of SARS-CoV-2 testing and related tests.

William Hughes, the owner and operator of the Greensburg, Pennsylvania-based lab, made cash payments for referrals between October 2011 and August 2013.

The lab firm was accused of billing government payors for unnecessary testing as well as paying illegal compensation to phlebotomy vendors.

The US Food and Drug Administration said it plans to aggressively pursue companies selling unproven products for diagnosing, preventing, or treating COVID-19.

The agency said it believes its recent focus on the issue has tamped down on genetic testing fraud, though it expects new questionable arrangements will emerge.

Ravitej Reddy pleaded guilty in federal court to allegations he illegally billed Medicare for cancer genomic testing and pharmacogenetic testing.

Patrick Muraca, the former CEO of Nuclea Biotechnologies and NanoMolecularDx, was already serving a prison term of more than two years.

The US DOJ had alleged Boston Heart Diagnostics conspired to pay doctors kickbacks that were disguised as investment returns.