Jerome F. Gorgon, Jr., U.S. Attorney’s Office for the Eastern District of Michigan | Department of Justice
Two individuals have been charged in connection with a $500 million scheme involving fraudulent billing for COVID-19 testing services, according to an announcement by United States Attorney Jerome F. Gorgon Jr. The accused are Cemhan “Jimmy” Biricik, 46, of Boca Raton, Florida, and Dr. Martin Perlin, 74, of Fairfield, Connecticut. Both were arrested and face charges including conspiracy to commit health care fraud and more than 50 substantive counts of health care fraud.
Biricik served as the Chief Executive Officer of Fast Lab Technologies, LLC (Fast Lab), while Dr. Perlin was the Medical Director responsible for ordering most of the tests. The indictment alleges that during the pandemic, Fast Lab operated a website advertising free COVID-19 tests. Users were prompted to provide insurance information when requesting tests.
According to prosecutors, Fast Lab used this information to submit false claims to Medicare, Medicaid, TRICARE, and private insurers for both antigen and PCR tests on multiple dates for each beneficiary. Claims submitted indicated that antigen tests were observed by medical professionals and that saliva samples were collected and tested by professionals; however, authorities allege that most antigen tests were self-administered at home without observation and no saliva samples were collected or tested by Fast Lab. Dr. Perlin is accused of ordering these tests without having a treating relationship with the patients.
The indictment further alleges that Fast Lab often billed insurance companies before test kits were delivered to beneficiaries. In total, Biricik is alleged to have billed over $500 million in claims and received more than $50 million in payments.
Gorgon announced the charges alongside officials from several agencies involved in the investigation: Special Agent in Charge Mario Pinto (HHS-OIG), Special Agent in Charge Cheyvoryea Gibson (FBI Detroit Division), Special Agent in Charge Derek M. Holt (OPM-OIG), Acting Assistant Secretary Janet Dhillon (DOL-EBSA), Acting Special Agent in Charge Christopher Silvestro (DCIS), Special Agent in Charge Karen Wingerd (IRS-CI Detroit Field Office), Special Agent in Charge Megan Howell (DOL-OIG Great Lakes Region), Acting Inspector Sean McStravick (USPIS), U.S. Marshal Owen Cypher for the Eastern District of Michigan, and Michigan Attorney General Dana Nessel (MFCU).
“The public is reminded that an Indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.”
Special Agents from HHS-OIG, FBI, OPM-OIG, DOL-EBSA, DCIS, MFCU, IRS-CI, DOL-OIG, USPIS, and the U.S. Marshal’s Service are investigating this case. Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka are prosecuting it with assistance from Assistant United States Attorney Ryan T. Nees of the Southern District of New York.
