(The Center Square) – The Office of the Attorney General’s Medicaid Fraud Control Unit arrested three people associated with the genetic testing company ApolloMDx for fraudulently billing Medicare approximately $142 million.
Lily Tran Daniel, Kenneth Reynolds, and Lillian Thai are the individuals involved in the alleged healthcare fraud scheme. The MFCU and the FBI executed warrants seizing sports cars, a sailboat and three properties at a total value of $7.1 million. The goods were funded by illegal proceeds of the operation, according to a July 28 news release.
ApolloMDx offered illegal kickbacks to purchase recipient information from marketers and orders for genetic testing from doctors, the office alleges.
“In some cases, doctors made fraudulent diagnoses to make it appear as though recipients were eligible for testing when they were not,” according to the news release. “In addition, ApolloMDx altered dates of service on testing orders to make it appear that multiple DNA samples were collected on different dates to enable billing for multiple dates of service.”
The case was investigated by Sergeant Joyce Combest, Investigative Auditor Wanda Guess, and Captain Rick McCollum from the Texas MFCU. The Department of Health and Human Services’ Office of Inspector General and the FBI also helped with the investigation.
In the last year, the MFCU recovered more than $236 million in settlements and judgments for Texas taxpayers.
