FALSE CLAIMS

Florida Lab Owners Convicted for Role in Notorious Drug Distribution Scheme

Case: The two brothers who own a Palm Beach lab pleaded guilty to health care fraud for their role in the illegal drug distribution conspiracy carried out by notorious sober home operator Kenny Chatman. The brothers, who face up to 10 years in prison, paid kickbacks to rehab centers operated by Chapman for urine samples used to perform medically unnecessary drug tests that were subsequently billed to insurance companies at high rates. Their lab, Smart Lab, also faces charges carrying potential fines of up to $500K.

Significance: If you’ve never heard of him, Kenny Chatman has been described by Florida prosecutors as not the biggest illegal drug treatment provider in the state, only the most dangerous. Chatman locked up drug addicts that came to his sober home for help, taking their food stamps, and even forcing them into prostitution. Addicts with insurance were forced to produce three urine samples per week for testing. Several died of overdoses in the homes. And Chatman made millions in the process. Now that the kingpin is in jail for 27 years for health fraud, money laundering and sex trafficking, prosecutors have begun targeting his lieutenants.

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