Whistleblower News From The Inside -- February 22, 2018

By the C|C Whistleblower Lawyer Team

Massachusetts lab settles FCA suit for over $650k — Precision Testing Laboratories have settled allegations that it marketed and conducted expensive, complex, and medically unnecessary drug tests on residents of Medicaid-funded sober homes in Connecticut. As part of the settlement, Precision Testing is banned from participation in Connecticut’s Medicaid program for 10 years. Connecticut AG

Long Island man convicted of larceny for stealing from Medicaid-funded charity — John Cornachio was convicted of larceny for holding a “no-show” job in order to steal from Narco Freedom, a Bronx non-profit that was founded to provide substance abuse services. As part of this investigation, the State also filed a civil suit under the New York FCA against Narco Freedom, which resulted in a $118M settlement (in bankruptcy) with New York and Federal authorities in January 2016. Cornachio received over $800k in salary and benefits from his fake job. New York AG

Maryland man convicted of food stamp fraud — Mahmood Hussain Shah was convicted on charges of wire fraud in connection with a scheme to redeem food stamp benefits for cash. Shah, who owned a grocery store in Baltimore, received over $1.6M in payments for food sales that never occurred. USAO Maryland