From mint · Anjali Thakur · · 1m 20s
Indian-origin lab owner charged in $66 million COVID-19 test fraud
US lab owner Rajesh Patel charged with $66.2 million COVID-19 test fraud scheme.
In brief
US lab owner Rajesh Patel charged with $66.2 million COVID-19 test fraud scheme. Rajesh Patel, an Indian-origin lab owner in Illinois, was charged with five wire fraud counts for billing the US Health Resources and Services Administration for 3.8 lakh fake negative COVID-19 tests. Originally reported by mint.
Charges against lab owner
An Indian-origin laboratory owner in Illinois has been charged with five counts of wire fraud over an alleged scheme involving 3.8 lakh COVID-19 tests that were never conducted.
Fraud scheme details
Patel allegedly created 3.8 lakh fake negative test results for samples linked to Meridian Medical Staffing Inc. between May 2021 and April 2022.
Billing the HRSA program
Patel billed the US Health Resources and Services Administration Uninsured Program for the tests, which covered costs for uninsured people during the pandemic.
Laboratory agreement
The lab entered into an agreement with Meridian Medical Staffing Inc. to pay tens of millions of dollars for collecting test samples and providing biological information.
Fraudulent payments
Patel submitted $66.2 million in fraudulent claims to the HRSA program and received $44.1 million in payments, with $28 million going to Patel personally.
Prosecutor statements
US prosecutors say Patel exploited the pandemic crisis to fabricate tests and bill taxpayers for them, with the FBI emphasizing the need to stop fraud using federal healthcare dollars.
What matters most
Rajesh Patel, an Indian-origin lab owner in Illinois, was charged with five wire fraud counts for billing the US Health Resources and Services Administration for 3.8 lakh fake negative COVID-19 tests.
