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Defendant Name, Crime, State Year
UTC Laboratories, Inc. (RenRX) and its three principals, Tarun Jolly M.D., Patrick Ridgeway, and Barry Griffith, have agreed to pay a total of $42.6 million to resolve allegations that they violated the False Claims Act by paying kickbacks in exchange for laboratory referrals for pharmacogenetic testing and for furnishing and billing for tests that were not medically necessary.
The government alleged that between 2013 and 2017, UTC and its principals offered and paid remuneration to physicians to induce the ordering of pharmacogenetic tests, purportedly in return for their participation in a clinical trial known as the Diagnosing Adverse Drug Reactions Registry (DART), clinical trial identifier NCT01970709.
The government also alleged that UTC and its principals offered and paid remuneration, including sales commissions, to entities and individuals as part of the scheme, and furnished pharmacogenetic tests that were not medically necessary and billed the Medicare program.
“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system. Today’s settlement reflects the government’s commitment to ensuring that taxpayer monies are well spent and not wasted on unnecessary medical testing,” said Assistant Attorney General Jody Hunt.
UTC Laboratories, Inc. (RenRX) agreed to pay $41.6 million, while its three principals, Tarun Jolly M.D., Patrick Ridgeway, and Barry Griffith, agreed to pay $1 million to resolve the allegations.
The company has also agreed to a twenty-five year period of exclusion from participation in any federal health care program.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.
“Genetic testing scams are becoming all too common. OIG has a genetic testing fraud alert here,” said Special Agent in Charge CJ Porter of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
The settlement announced today resolves allegations in six lawsuits pending in the United States District Court for the Eastern District of Louisiana.
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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