Former Delaware physician agrees to pay $180,000 in genetic testing fraud case

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Benjamin L. Wallace, U.S. Attorney for the District of Delaware | Official website

Former Delaware physician agrees to pay $180,000 in genetic testing fraud case

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Dr. Shayasta S. Mufti, a former Newark, Delaware physician, has agreed to pay $180,000 to resolve allegations that she violated the False Claims Act by ordering medically unnecessary genetic tests for more than 100 Medicare beneficiaries, according to an April 29 announcement from federal authorities.

The case highlights concerns about improper billing practices and the impact on federal healthcare programs like Medicare. Officials say fraudulent orders for expensive services drain resources and threaten the integrity of programs relied upon by millions of Americans.

According to the United States, Dr. Mufti ordered unnecessary genetic tests between April and November 2019 without having established physician-patient relationships with those tested. Authorities allege she did not examine patients or use test results in their treatment plans. In many cases, orders were based only on brief telemedicine consultations or none at all. The cost of these tests reportedly ran into thousands of dollars per patient for Medicare.

"Physicians who order unnecessary and expensive services, including genetic tests, drain critical resources from Medicare and other federal health care programs," said U.S. Attorney Benjamin L. Wallace. "These schemes not only waste taxpayer dollars, they undermine the integrity of programs that millions of Americans rely on. Our office will continue to use data analytics and work closely with our law enforcement partners to identify providers who misuse federal funds and to hold them accountable." Assistant U.S. Attorney Jacob Laksin and Auditor David Cheung handled the case.

A copy of this press release is available on the website of the U.S. Attorney’s Office for the District of Delaware along with related court documents and information through PACER by searching Case No. 25-771-MN.

Officials emphasized that these are allegations only; there has been no determination of liability against Dr. Mufti.

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