Lab owner to plead guilty in Medicare kickback scheme

Pennsylvania

Prosecutors say he paid kickbacks to marketers who induced thousands of Medicare patients to submit cheek swabs for genetic testing

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PITTSBURGH (AP) – A Pennsylvania business owner has agreed to plead guilty in a $127 million kickback scheme involving his genetic testing labs.

Prosecutors say Ravitej Reddy and co-conspirators paid kickbacks to marketers who induced thousands of Medicare patients around the country to submit cheek swabs for genetic testing.

He also allegedly paid kickbacks to a Georgia telemedicine company whose doctors wrote bogus prescriptions for the testing.

Reddy’s labs are in the Pittsburgh area. He is scheduled to plead guilty next month.

U.S. Attorney Scott Brady says Reddy and his “partners in crime” orchestrated a “sophisticated, nationwide kickback scheme.”

Reddy and his lawyers have not commented on the case.

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