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Weekly Enforcement Report: Lab Owners Charged in 2 Fraud Schemes

by | Mar 15, 2023 | News, Open Content

The owners face fraud charges in two different schemes, one involving urine drug testing and one involving COVID-19 testing.

After a few weeks lacking in healthcare-related enforcement actions involving labs or lab testing, this past week finally saw a couple of key fraud cases—one involving urine drug tests, and the other relating to COVID-19 testing. A doctor was also convicted for his role in a $5 million healthcare fraud scheme.

Key Healthcare-Related Enforcement Actions Announced from March 8 – March 15, 2023

Date Action Announced           Defendant(s)Allegations/Charges/ConvictionsResult
March 10·       Rita Ausiejus
·       Solid Diagnostics, Inc.
The Massachusetts-based independent clinical lab and its owner are charged with larceny over $1,200 and Medicaid reverse fraud claims relating to improperly ordered and medically unnecessary urine drug tests that allegedly led to more than $400,000 being falsely billed to the Massachusetts Medicaid program.Defendants to be arraigned on March 21.1
March 10Frederick GoodingPhysician and owner of a now-defunct pain management and psychiatry practice in Washington, DC, was convicted for his role in a $5 million healthcare fraud scheme in which he billed Medicare for injections he either never provided, or didn’t provide as billed.Convicted of 11 counts of healthcare fraud and is to be sentenced June 26. Faces up to 10 years for each count.2
March 13Zishan AlviCo-owner of a company identified as “Laboratory A,” a Chicago-based lab supposedly offering two types of COVID-19 tests, was indicted on one count of theft of government funds and 10 counts of wire fraud. The charges relate to alleged fraudulent billing to the HRSA Uninsured Program for COVID-19 testing that was either already paid for by customers, improperly performed, or not performed at all. The defendant is also alleged to have used the ill-gotten funds for his own personal use.Indictment aims for Alvi to forfeit funds from trade and investment accounts, five luxury vehicles, and at least $6.8 million gained from the alleged scheme. He faces a maximum of 10 years in prison on the theft of government funds count and up to 20 years in prison for each wire fraud count.3
Source: Massachusetts Office of the Attorney General, U.S. Department of Justice, United States Attorney’s Office of the Northern District of Illinois.1-3


  1. https://www.mass.gov/news/burlington-laboratory-and-owner-charged-for-drug-test-fraud
  2. https://www.justice.gov/opa/pr/physician-convicted-36-million-health-care-fraud-scheme
  3. https://www.justice.gov/usao-ndil/pr/suburban-chicago-man-indicted-covid-19-testing-fraud-scheme