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US Wins $370M Judgment in Lab Fraud Case

NEW YORK – The US Attorney's Office for the Middle District of Florida said Tuesday that it has obtained more than $370 million in judgments against a Kentucky lab owner and his businesses for a lab testing scheme targeting Medicare.

On Sept. 21, the US District Court for the Middle District of Florida granted the government's motion for default judgment, awarding judgment against the defendants Rajen Shah and his companies United Diagnostics Lab, Tomoka Medical Lab, Tennessee Valley Regional Laboratory, Luminus Diagnostics, and Golden Rule Management.

The government filed a complaint-in-intervention against Shah and his companies in August 2022 alleging that he and his labs had billed Medicare for molecular testing not ordered by a licensed healthcare provider.

In 2021, Shah received a jail sentence for a criminal contempt charge due to violation of court orders related to the government's fraud investigation.