Newark, N.J. – In a stunning admission, Charles P. Kasbee Jr., the 48-year-old from Palm Beach Shores, Florida, today confessed to his pivotal role in a $4.8 million Medicare fraud and kickback scheme that has left the federal healthcare program reeling.
Kasbee pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark, charged with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute. The elaborate scheme involved deceptive telemarketing tactics and the shipment of cancer genetic screening tests that were not medically necessary.
From February 2019 to September 2019, Kasbee and his co-conspirators exploited Medicare beneficiaries by using marketing call centers to obtain their personal and medical information. They then sent out CGX testing kits to these unsuspecting individuals. The completed kits were shipped to a laboratory, which subsequently submitted claims for reimbursement to Medicare. For each test that resulted in reimbursement, Kasbee pocketed kickback payments of over $1,200.
In an effort to mask their illegal activities, Kasbee and his associates concocted false invoices, labeling legitimate kickback and bribe payments as ‘expenses.’ They received payments based solely on the number of tests Medicare reimbursed, a clear violation of federal anti-kickback laws.
The repercussions of this scheme were severe. The fraud caused more than $4.8 million in losses to Medicare, and Kasbee now faces a lengthy prison sentence. Sentencing is set for November 19, 2025.
U.S. Attorney Alina Habba acknowledged the efforts of various federal agencies in unraveling this scheme, including the FBI, Department of Health and Human Services-Office of Inspector General, U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, and the U.S. Department of Veterans Affairs Office of Inspector General.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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