In a shocking case of COVID-19 testing fraud, the United States Attorney’s Office for the Southern District of New York has filed a civil complaint against LabQ Clinical Diagnostics, LLC, Community Mobile Testing, Inc., Dart Medical Laboratory, Inc., and their CEO, Moshe Landau, alleging that they fraudulently billed the federal program that reimbursed health care providers for COVID-19 testing provided to uninsured persons.

The lawsuit, filed in Manhattan federal court on June 13, 2024, alleges that the defendants knowingly submitted or caused to be submitted claims to the Uninsured Program for COVID-19 testing in instances when the cost of the testing had been reimbursed by another source and/or the testing had been provided to individuals with health coverage. This fraudulent scheme drained limited funds appropriated by Congress to cover COVID-19 testing costs for uninsured persons.

“As alleged, LabQ, CMT, Dart Medical, and their CEO, Moshe Landau, fraudulently took tens of millions of dollars from the Uninsured Program for the testing of individuals with health care coverage, and thereby depleted the funds that Congress authorized for the testing of uninsured individuals who truly needed the federal assistance,” said U.S. Attorney Damian Williams.

HHS-OIG Assistant Special Agent in Charge Elysia Doherty stated, “It is alleged in this case that the defendants knowingly sought reimbursements from federal funds available during the COVID-19 pandemic to which they were not entitled. We will continue to work with our law enforcement partners to seek resolutions and effect change to preserve the integrity of the federal health care system.”

The FBI Assistant Director in Charge, James Smith, added, “Moshe Landau, the CEO of various COVID-19 testing companies, allegedly defrauded a federal healthcare program by submitting illegitimate claims to receive unlawful reimbursements. Collecting tens of millions of dollars in reimbursements, Landau and his companies allegedly took advantage of a government initiative that provided support and assistance to healthcare providers during a global pandemic.”

According to the complaint, LabQ provided COVID-19 testing for school districts and nursing homes, as well as to walk-up patients at numerous LABQ-branded vans and tents located on public streets in New York City. LabQ and Dart Medical received approximately $130 million from the Uninsured Program for COVID-19 Testing. The lawsuit seeks damages and civil penalties under the False Claims Act as well as a recovery of government funds under the common law.

As the investigation continues, it is clear that the actions of LabQ and its CEO, Moshe Landau, have put the integrity of the federal healthcare system at risk. The United States Attorney’s Office for the Southern District of New York is committed to holding accountable those who divert federal funds designed to provide critical medical care to the uninsured population of this city and nation in order to line their own pockets.