The owner of a Texas laboratory has been charged in connection with a $79 million fraud scheme involving respiratory pathogen panel (RPP) testing. Osman Syed, also known as Syed Osman, is accused of submitting fraudulent claims to Medicare and Texas Medicaid through BioDX Labs LLC. According to court documents, the claims were for tests that were not provided or medically necessary.
Syed allegedly used a physician's personal information without consent to submit these claims, despite the physician having no relationship with the beneficiaries or treating them for respiratory symptoms. To cover up the lack of actual testing, Syed reportedly claimed that reference laboratories performed the tests. The proceeds from this scheme were laundered by transferring funds to bank accounts abroad in countries including China, Hong Kong, Turkey, Greece, and Switzerland. Over $15 million in cash has been seized by the government.
Syed faces charges including three counts of health care fraud and conspiracy to engage in money laundering. If convicted, he could face up to 10 years in prison for each count.
The announcement was made by Principal Deputy Assistant Attorney General Nicole M. Argentieri from the Justice Department’s Criminal Division; Special Agent in Charge Jason E. Meadows of HHS-OIG Dallas Regional Office; Special Agent in Charge Travis Pickard of HSI Dallas Field Office; Special Agent in Charge Craig Wolf of USSS Dallas Field Office; Chief William Marlowe of Texas Attorney General’s MFCU; and Acting Special Agent in Charge P.J. O’Brien of FBI Dallas Field Office.
The investigation is being conducted by HHS-OIG, HSI, USSS, MFCU, and FBI. Assistant Chief Brynn Schiess from the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads efforts against health care fraud through its Health Care Fraud Strike Force Program. Since its inception in March 2007, over 5,400 defendants have been charged with billing more than $27 billion to federal health care programs and private insurers.
It is important to note that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
