From CBS News · Marissa Sulek · · 2m
Empty lab office bills thousands while mail piles up
A Crystal Lake medical office with no employees is apparently billing Blue Cross Blue Shield for patient tests that may never happen.
In brief
A Crystal Lake medical office with no employees is apparently billing Blue Cross Blue Shield for patient tests that may never happen. A Crystal Lake lab office with no visible employees has accumulated thousands of unopened Blue Cross Blue Shield letters, prompting fraud investigators to suspect phantom billing…
Mysterious five hundred dollar lab charge
Katie Duda spotted an unusual five hundred dollar lab test from Niyraa LLC on her Blue Cross Blue Shield explanation of benefits. She had never heard of the provider.
Office in Crystal Lake appears completely vacant
Duda and her mother traced Niyraa LLC to a strip center in Crystal Lake. The office had a sign inviting people to drop off mail inside, but no employees were anywhere in sight.
“It looked vacant.”
Thousands of unopened Blue Cross letters pile up
CBS News Chicago visited Niyraa LLC five times over several months. They found thousands of unopened pieces of mail, mostly from various Blue Cross Blue Shield entities, sitting in postal bins on the front desk.
Mail moves but never gets opened or removed
Each time CBS News Chicago returned, the thousands of envelopes were still there. They moved from the front desk to garbage bags in the back, but remained unopened for months.
Mohammed I Quadri runs the mysterious lab
Mohammed I Quadri's name appears on the lab's signage and current certifications. CBS News Chicago tried multiple ways to contact him but could not reach him. The mall owner said he hasn't seen Quadri in months.
Fraud examiner suspects phantom billing scheme
Certified fraud examiner James Scordo visited the office and saw pristine lab equipment, unopened supply packages, and mountains of mail. He said it appears to be a front for fraud, possibly phantom billing where Blue Cross pays for services never provided.
“It appears this is a front for a fraud scheme. I mean, it has all the signs.”
Patients' medical records and insurance at risk
Scordo warned that if lab tests were never conducted, it could impact patients' medical records and ability to get insurance in the future. Each unopened envelope could represent a potential victim whose personal information is compromised.
“Each one of those could be a potential victim.”
Postal Service Inspector General investigating
The Postal Service Inspector General is investigating, but had not protected the mail for many months. As of September sixteenth, the office door remained unlocked with the mail drop-off sign still taped to it.
The big picture
A Crystal Lake lab office with no visible employees has accumulated thousands of unopened Blue Cross Blue Shield letters, prompting fraud investigators to suspect phantom billing.
