NEW YORK — The Texas attorney general's office recently announced that its Medicaid Fraud Control Unit (MFCU) has arrested three individuals associated with Houston-based genetic testing company ApolloMDx for their involvement in an alleged $142 million Medicare fraud scheme.
According to the Texas attorney general's office, ApolloMDx offered illegal kickbacks to purchase test recipient information from marketers and orders for genetic testing from doctors. In certain cases, doctors made fraudulent diagnoses to make it appear as though recipients were eligible for testing when they were not.
Additionally, ApolloMDx altered dates of service on testing orders to make it appear that multiple DNA samples were collected on different dates to enable billing for multiple dates of service, the office said.
In conjunction with the arrests, MFCU and the US Federal Bureau of Investigation seized sports cars, a sailboat, and three properties, valued at a combined $7.1 million and allegedly funded by illegal proceeds from the operation. The exact role of the arrested individuals — Lily Tran Daniel, Kenneth Reynolds, and Lillian Thai — in ApolloMDx was not disclosed.