Richard Reid, Health Care Fraud, Washington 2023

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Richard Reid, Health Care Fraud, Seattle WA, 2023

A former co-owner of a defunct medical testing company, Richard Reid, has been sentenced to an additional six months in prison for failing to report to prison as directed last spring.

In March 2022, Reid was convicted of five federal felonies connected to his scheme to profit from illegal kickbacks in the medical testing industry. He was initially sentenced to two years in prison in January 2023.

However, Reid repeatedly petitioned the court to delay his prison reporting date, claiming to have COVID-19 and then long COVID. Judge John C. Coughenour refused to delay the date past the end of April 2023. Instead of reporting to prison, Reid left his home in Astoria, Oregon and went on the run.

The FBI issued a ‘Wanted’ poster for Reid, and he was eventually arrested on May 7, 2023, after a member of the public reported seeing him in Taylorsville, Oregon.

Assistant U.S. Attorney Mike Dion asked for an additional ten months in prison for Reid, citing his refusal to accept responsibility for his role in the healthcare kickbacks scheme.

The activities of Bellevue-based Northwest Physicians Laboratory (NWPL) have been the subject of extensive civil and criminal litigation. Reid, as one of the owners and Vice President of Sales for NWPL, helped the company obtain more than $3.7 million in kickback payments by steering urine drug test specimens to two labs that could bill the government for testing.

The case was investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS). Assistant United States Attorney Michael Dion is prosecuting the case.

The U.S. Attorney’s Office says that Reid’s actions wasted many hours of law enforcement resources, and his persistence in refusing to accept responsibility ‘takes my breath away.’