DETROIT – A brazen $500 million healthcare fraud scheme preying on the COVID-19 pandemic has landed two men in federal custody. Cemhan “Jimmy” Biricik (age 46) of Boca Raton, Florida, and Dr. Martin Perlin (age 74) of Fairfield, Connecticut, were charged today with conspiracy to commit health care fraud and over 50 counts of substantive health care fraud, announced United States Attorney Jerome F. Gorgon Jr.
The pair allegedly operated a nationwide scam through Fast Lab Technologies, LLC (Fast Lab), a New York-based company that offered “free” COVID-19 tests via its website. The catch? Fast Lab then systematically bilked Medicare, Medicaid, TRICARE, and private insurers for tests that were largely never administered. Individuals providing their insurance information were unknowingly used in a massive scheme to generate fraudulent claims.
According to the indictment, Fast Lab falsely claimed antigen tests were observed by medical professionals and that saliva samples were collected and analyzed. The reality, prosecutors say, is that most antigen tests – if taken at all – were self-administered at home. Saliva samples weren’t collected, and PCR testing was never performed. Dr. Perlin, as Fast Lab’s Medical Director, signed off on these tests despite having no legitimate doctor-patient relationship with those billed. Claims were even submitted before test kits were delivered to recipients.
Biricik, the sole member and CEO of Fast Lab, allegedly billed or caused to be billed more than $500 million in fraudulent claims, pocketing over $50 million in illicit payments. The scheme exploited fears surrounding the pandemic and abused federal healthcare programs for personal gain. The sheer scale of the fraud is staggering, representing a significant drain on resources intended for legitimate medical care.
The investigation was a multi-agency effort, involving Special Agents from the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), the U.S. Office of Personnel Management Office of the Inspector General (OPM-OIG), the Employee Benefits Security Administration (DOL-EBSA), the Defense Criminal Investigative Service (DCIS), the Michigan Medicaid Fraud Control Unit (MFCU), the Internal Revenue Service – Criminal Investigation (IRS-CI), the U.S. Department of Labor, Office of Inspector General (DOL-OIG), the U.S. Postal Inspection Service (USPIS), and the U.S. Marshal’s Service.
It’s crucial to remember that an Indictment is not proof of guilt. Both Biricik and Dr. Perlin are presumed innocent and will have the opportunity to present a defense in court. The government bears the burden of proving their guilt beyond a reasonable doubt. The case is being prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka, with assistance from Assistant United States Attorney Ryan T. Nees of the Southern District of New York.
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Key Facts
- State: Michigan
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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