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Jail for Urine Drug Testing Kickback Co-Conspirators

by | Dec 7, 2018 | Essential, Lab Compliance Advisor, Labs in Court-lca

Case: Urine samples produced by patients of a Maryland-based pain clinic were a billables gold mine for a Jersey City testing lab, well worth the $1.37 million in kickbacks it ultimately paid to secure them. The lab CEO was sentenced to a year and a day in jail, ordered to forfeit $241,600 and fined $5,000. His marketing consultant and co-conspirator got three months’ supervised release in home detention, a $23,400 forfeit order and a $4,000 fine. Significance: The defendants seem to have gotten a pretty good plea deal considering the scheme. According to the court documents, the parties agreed to split the profits 50/50, with the marketer getting a 5% cut for putting the deal together. Among the three clinic defendants, one was just sentenced to eight years in jail (the extra sentence reflecting the extra crimes of tax evasion and fraudulent billing of anesthesia), one died and the other is a fugitive.

Case: Urine samples produced by patients of a Maryland-based pain clinic were a billables gold mine for a Jersey City testing lab, well worth the $1.37 million in kickbacks it ultimately paid to secure them. The lab CEO was sentenced to a year and a day in jail, ordered to forfeit $241,600 and fined $5,000. His marketing consultant and co-conspirator got three months’ supervised release in home detention, a $23,400 forfeit order and a $4,000 fine.

Significance: The defendants seem to have gotten a pretty good plea deal considering the scheme. According to the court documents, the parties agreed to split the profits 50/50, with the marketer getting a 5% cut for putting the deal together. Among the three clinic defendants, one was just sentenced to eight years in jail (the extra sentence reflecting the extra crimes of tax evasion and fraudulent billing of anesthesia), one died and the other is a fugitive.

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