DETROIT – Two individuals were charged for their involvement in a $500 million, nationwide scheme that involved billing Medicare, Medicaid, TRICARE, and other health insurance programs for Covid-19 testing services that were never rendered, U.S. Attorney Jerome F. Gorgon Jr. announced Thursday, July 31.
Cemhan “Jimmy” Biricik, 46, of Boca Raton, Florida, and Dr. Martin Perlin,74, of Fairfield, Connecticut, were charged with conspiracy to commit health care fraud and more than 50 substantive counts of health care fraud. Biricik was the sole member and CEO of New York-based Fast Lab Technologies, LLC. Dr. Perlin was Fast Lab’s medical director and provider responsible for ordering the majority of the tests. Both defendants were arrested Thursday morning.
According to the federal indictment, during the Covid-19 pandemic, Fast Lab operated a website offering “free” Covid tests. When individuals went to the website to order tests, they were asked to provide their insurance information. Fast Lab then used this insurance information to fraudulently bill Medicare, Medicaid, TRICARE and numerous private insurances for both rapid and laboratory tests, across multiple dates for each beneficiary.
Specifically, Fast Lab’s claims represented that (1) the rapid tests had been observed by medical professionals, (2) saliva samples were collected by medical professionals, and (3) PCR, or lab, testing was performed on those samples. In reality, the vast majority of antigen, or rapid, tests—if taken at all—were taken at home and not observed by medical professionals; saliva samples were never collected nor returned to Fast Lab; and PCR testing was never performed.
Dr. Perlin was the ordering physician for these tests, despite not having a treating relationship with the beneficiaries. Further, Fast Lab would regularly submit insurance claims before the test kits were even delivered to the beneficiaries.
In total, Biricik billed or caused to be billed more than $500 million in claims and was paid more than $50 million.
The investigation included the U.S. Department of Health and Human Services Office of Inspector General, FBI, U.S. Postal Service, U.S. Marshal Office for the District of Michigan, and the office Michigan Attorney General Dana Nessel.
This case is being prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka. Assistant United States Attorney Ryan T. Nees of the United States Attorney’s Office for the Southern District of New York also provided assistance.
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