William J. Hughes, 70, of Pittsburgh, Pa., and Dr. Varanise C. Booker, 62, of Louisville, Ky., are facing federal charges in a multimillion-dollar healthcare fraud scheme that exploited Medicare and Medicaid for over two years. Indicted by a federal grand jury on February 21, the pair are accused of orchestrating a kickback operation tied to Universal Oral Fluid Labs (UOFL) in Greensburg, Pa., where Hughes was owner and operator.
Dr. Booker, a licensed psychiatrist and owner of Family and Children Behavioral Health Services in Louisville, allegedly referred Medicare and Medicaid patients to UOFL for saliva drug testing — not out of medical necessity, but for cash. In exchange, she received monthly checks and direct payments from Hughes and UOFL, totaling $843,242.31 between September 2012 and August 2013. These payments were disguised as profits from a so-called ‘Joint Venture Agreement,’ but prosecutors say they were nothing more than bribes for patient referrals.
UOFL, enrolled as a provider in both Medicare and Kentucky Medicaid, billed federal and private insurers for drug tests on referred patients. Hughes and UOFL then funneled back payments to Booker for each referral that exceeded $150, violating federal anti-kickback laws. The arrangement allowed UOFL to collect millions from third-party payors while funneling illicit gains to the defendants under the guise of a business partnership.
The indictment alleges that both defendants certified compliance with federal healthcare laws when enrolling as providers, signing Medicare Form 885B — a promise they allegedly shattered. By accepting remuneration in exchange for patient referrals, they violated Title 42, United States Code, Section 1320a-7b(b)(1)(A), which explicitly bans kickbacks in federal health care programs.
From October 2011 through August 2013, the conspiracy turned patient care into a commodity. Referrals weren’t driven by diagnosis — they were transactions. Every test ordered by Booker meant another payout from Hughes, while taxpayers and insurers footed the bill. Investigators say the fraud was systemic, sustained, and meticulously documented through bank records and billing data.
The case, announced by U.S. Attorney Scott W. Brady in Pittsburgh, underscores the reach of healthcare fraud in the shadow economy of clinical labs and mental health providers. Hughes and Booker now face severe penalties, with federal law prescribing maximum sentences for each count of conspiracy. As the case moves forward, prosecutors aim to prove that medical ethics were traded for cold cash — and that patient trust was just another line item in their ledger.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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