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Florida Healthcare Exec Pleads Guilty to $1.2M Genetic Testing Kickback Scheme

NEW YORK – A Florida healthcare executive pleaded guilty on Monday to receiving kickbacks in a $1.2 million genetic testing fraud scheme, the US Attorney's Office for the District of New Jersey announced on Monday.

Norman Smiley, the owner of Sun Health Advocates, admitted to receiving kickbacks from clinical laboratories, including Metric Lab Services and Spectrum Diagnostic Labs, in exchange for providing DNA samples and genetic test orders.

Sun Health Advocates acquired patient DNA samples and physician orders to submit to clinical labs for testing. In exchange Sun Health was paid kickbacks, while the labs received payments from Medicare.

To conceal the fraud, Sun Health issued sham invoices to the labs that reflected services provided at an hourly rate, even though the companies had already agreed to the kickback amount that would be paid, the attorney's office said. The kickback amount was based on the revenue the labs received from Medicare.

Smiley's maximum penalty is five years in prison and a fine of $250,000 or twice the gross gain from the offense, whichever is greater. His sentencing is scheduled for March 16.