News Summary
Two executives from Fast Lab Technologies LLC have been indicted for their role in a significant health care fraud scheme. Cemhan Biricik and Dr. Martin Perlin are accused of conspiracy and over 50 counts of health care fraud linked to fraudulent COVID-19 testing. They allegedly billed insurers, including Medicare and Medicaid, for tests that were never performed. With evidence of over $500 million in false claims, these charges highlight concerns surrounding health care fraud in Michigan.
Detroit – A federal grand jury has indicted two executives from Fast Lab Technologies LLC, a New York-based medical lab, for their alleged involvement in a substantial health care fraud scheme. The accused, Cemhan “Jimmy” Biricik, 46, of Boca Raton, Florida, and Dr. Martin Perlin, 74, of Fairfield, Connecticut, face serious charges, including conspiracy to commit health care fraud and over 50 counts of health care fraud. Their arrests occurred this past Thursday, and they now face potential prison sentences of up to 10 years for the conspiracy charge, as well as 10 years for each count of health care fraud if convicted.
United States Attorney for the Eastern District of Michigan, Jerome Gorgon Jr., announced the details of the indictment which alleges that Fast Lab Technologies engaged in fraudulent practices surrounding COVID-19 testing. According to federal prosecutors, the company marketed free COVID-19 tests on its website but failed to provide any actual testing services. Instead, consumers were directed to submit their insurance details when placing orders for the tests, which were purportedly used to improperly bill health insurance companies.
Specifically, the indictment claims that Biricik and Perlin orchestrated a scheme in which the lab billed various insurers, including Medicare, Medicaid, and TRICARE, for tests that were not performed. Allegations include improper billing for tests that were supposedly dispatched but were never actually sent. Furthermore, many returned samples were reportedly neither opened nor tested. Biricik, in particular, is accused of routinely billing insurance plans for additional tests without the knowledge or consent of consumers, contributing to an extensive list of fraudulent claims.
Evidence gathered by investigators indicates that Biricik submitted more than $500 million in false claims and received over $50 million in payments as a result. Perlin, who served as the medical director of Fast Lab Technologies, reportedly ordered the majority of the tests, despite lacking a legitimate treating relationship with the consumers involved. This lack of a treating relationship raises further questions about the legitimacy of the testing and billing practices employed by the laboratory.
As of now, court records do not show any lawyers representing Biricik and Perlin in this case. Fast Lab Technologies has yet to respond to requests for comment regarding the allegations leveled against the organization and its executives.
This incident adds to a growing concern regarding health care fraud in Michigan. Over the past year, various cases have emerged involving individuals and schemes aimed at illegally obtaining funds from government programs like Medicaid and Medicare. These patterns highlight a systemic issue within the health care sector, which is struggling to combat fraudulent activities that affect both consumers and the integrity of health care systems.
As the case proceeds, attention will be focused on the legal proceedings and any implications this may have on health care practices in Michigan and beyond. The severity of the charges faced by Biricik and Perlin underscores the critical need for vigilance in monitoring health care billing practices to ensure that legitimate providers and patients are not adversely affected by the actions of fraudulent entities.
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Additional Resources
- The Detroit News: Grand Jury Indicts Two for COVID-19 Test Billing Fraud
- CBS News: Michigan Residents Charged in Health Care Fraud Probe
- WNEM: Several Charged in Health Care Fraud Scheme
- Macomb Daily: Metro Detroit Providers Charged with Health Care Fraud
- Wikipedia: Health Care Fraud
- Encyclopedia Britannica: Health Care Fraud
