Florida Businessman Raked in $27M for Bogus Cancer Tests

MIAMI – Daniel Hurt, a 52-year-old Florida businessman with a history of deceit, has agreed to pay a whopping $27.1 million to settle allegations that he and his companies conspired with others to scam Medicare for cancer genomic tests.

Hurt, who owned and/or operated various companies including Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, is accused of submitting false claims to Medicare for tests that were not medically necessary and procured through kickbacks. This egregious scheme allowed Hurt to rake in millions of dollars, but his luck has finally run out.

According to the Department of Justice, Hurt and his companies conspired with telemarketing agents, telemedicine providers, reference laboratories, and billing laboratories to submit false claims for payment to the Centers for Medicare and Medicaid Services (CMS). The alleged scheme, which spanned from January 2019 to November 2021, involved soliciting Medicare beneficiaries for “free” cancer genomic tests, “prescribing” unnecessary tests, and conducting the tests through referral laboratories.

Hurt’s previous guilty plea to criminal healthcare fraud charges has landed him in hot water, and his latest settlement is a testament to the government’s commitment to holding accountable those who prey on vulnerable Americans. “Our office is committed to pursuing those who threaten our government healthcare programs by submitting false claims for medically unnecessary services that are tainted by unlawful payments to marketers,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida.

The settlement also includes the resolution of allegations brought in three cases filed under the qui tam provisions of the False Claims Act (FCA). Robert Gerstein, a minority owner who blew the whistle on Hurt’s scheme, will receive a significant portion of the settlement as a reward for his bravery. “Submitting false claims for medically unnecessary services to Medicare and Medicaid jeopardizes the integrity of vital health care programs, and we, along with our law enforcement partners, will continue to make sure those who attempt to do so are held accountable,” stated Deputy Inspector General of Investigations Christian J. Schrank of HHS-OIG.

The $27.1 million settlement is a significant blow to Hurt and his companies, which will also be excluded from Medicare, Medicaid, and all other Federal health care programs. The government’s relentless pursuit of healthcare scammers like Hurt sends a clear message: those who exploit vulnerable Americans and scam the system will be held accountable.