Legal Issues

Lab Owners Charged In $107 Million Medicare Scam

Lab Owners Charged In $107 Million Medicare Scam

Owners of a genetic testing laboratory have been charged in a $107 million Medicare scam after an investigation by the IRS and other agencies.

Credit: Andrew Brookes/Getty Images

In an official release, the IRS explains details of the case against John Grisham, of Hickory Creek, Texas, Rob Wilburn, of San Antonio, Texas, and Richard Speights Jr., of Lake Charles, Louisian.

The trio were all associated with the genetic testing laboratory, Trinity Clinical Laboratories LLC, in Lewisville, Texas. From January 2018 through October 2019, they and their co-conspirators are accused of engaging in a scheme in which they obtained thousands of Medicare beneficiaries' DNA samples and prescriptions to fraudulently bill Medicare and Medicare Advantage for genetic testing.

CEO Grisham, CFO Wilburn, and lab co-owner Speights Jr. all allegedly accepted bribes and kickbacks as part of the scam. 

Credit: Westend61/Getty Images

During the same period of time that the kickback scheme was occurring, Medicare allegedly reimbursed Trinity Clinical Laboratories for about $44 million based on the fraudulent claims. 

All three defendants have been charged with charged with one count of conspiracy to defraud the United States and to pay and receive kickbacks and bribes. The latter carries a maximum sentence of 10 years in prison, while the former carries up to five years in prison. 

The case is being investigated by multiple government agencies -- IRS-CI, HHS-OIG, FBI, TX-MFCU, USPIS, and DOL -- as part of Operation Double Helix, a federal law enforcement initiative.

What do you think about Trinity Clinical Laboratories' scheme?

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Feature Image Credit: Westend61/Getty Images

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Rebekah Barton

Rebekah Barton

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