False Claims Act Suit for Fraudulent Billing of Covid-19 Tests Against LabQ Clinical Diagnostics, LLC and Its CEO
The U.S. Attorney’s Office for the Southern District of New York has filed a civil fraud suit against LabQ Clinical Diagnostics, LLC (LABQ), Community Mobile Testing, Inc. (CMT), Dart Medical Laboratory, Inc. (DART MEDICAL), and their CEO, Moshe Landau. According to a June 13, 2024, press release by the US Attorney, the suit alleges that Defendants fraudulently billed the federal program that reimbursed health care providers for COVID-19 testing for uninsured individuals (the “Uninsured Program”).
As background, testing providers were required to attest to the Health Services and Resources Administration (HRSA) that their patients were uninsured and that no other source would pay for the testing. The allegations state that Defendants knowingly submitted claims to the Uninsured Program even when the testing costs were reimbursed elsewhere or provided to individuals with health coverage. The Complaint alleges, this fraudulent scheme “drained limited funds appropriated by Congress” to cover crucial COVID-19 testing for uninsured individuals. According to the press release, the lawsuit seeks damages and civil penalties to recover lost government funds under the False Claims Act and common law principles.
U.S. Attorney Damian Williams is quoted, “LabQ, CMT, Dart Medical, and their CEO, Moshe Landau, [allegedly] fraudulently took tens of millions of dollars from the Uninsured Program for the testing of individuals with health care coverage, and thereby depleted the funds that Congress authorized for the testing of uninsured individuals who truly needed the federal assistance. This office will hold accountable those who divert federal funds designed to provide critical medical care to the uninsured population of this city and nation in order to line their own pockets.”
The investigation was also conducted by HHS-OIG Assistant Special Agent in Charge Elysia Doherty and FBI Assistant Director in Charge James Smith. Smith emphasized that “Landau and his companies exploited a government initiative meant to serve vulnerable citizens.”
If you have any information relating to possible civil fraud, other types of Healthcare Fraud, or would like to speak to an experienced member of the Constantine Cannon whistleblower lawyer team, please do not hesitate to contact us for a free and confidential consultation.