Americans who ordered Covid-19 tests advertised as 'no cost' online during the pandemic were allegedly at the centre of a healthcare fraud scheme that generated more than $500 million in false claims, according to the US Department of Justice. Prosecutors said the company behind the tests used customers’ insurance information to bill government-backed healthcare programmes for medical services that were never provided.
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Hasan “Lucas” Seyhun, 45, of Miami, Florida, pleaded guilty on Wednesday to conspiracy to commit healthcare fraud. Seyhun was the Chief Operating Officer of New York-based Fast Lab Technologies, LLC, which offered people 'no cost' Covid-19 tests that could be ordered through its website during the pandemic.
According to court documents, Fast Lab allegedly used the insurance details provided by customers to submit claims for Covid-19 testing services that had not actually taken place. The claims included services linked to antigen tests, saliva samples and PCR testing. Prosecutors said the company claimed that medical professionals had observed antigen tests, collected saliva samples and conducted PCR testing, even when those services had not been provided.
The case centres on how the insurance information of people seeking Covid-19 tests was allegedly used after they placed their orders. Prosecutors said Seyhun worked with previously charged defendants Cemhan “Jimmy” Biricik, Fast Lab’s CEO, and Dr Martin Perlin, the company’s Medical Director, to carry out the scheme. Seyhun also admitted that, as COO, he helped orchestrate the submission of millions of dollars in fraudulent healthcare claims.
Over $500 million in false claims
The US Attorney’s Office for the Eastern District of Michigan said the scheme resulted in more than $500 million in fake claims being submitted to government-backed healthcare programmes. Seyhun admitted that the fraud resulted in at least $35 million in illicit payments.
He has agreed to a forfeiture money judgment of $4,313,153. The amount represents the money he personally received from the scheme.
Prosecutors also said the company sometimes submitted claims before customers had even received their Covid-19 test kits. US Attorney Jerome F Gorgon Jr said the alleged conduct took advantage of the fear and isolation surrounding the pandemic.
