Lab Owner Pleads Guilty in Covid Test Kit Fraud Scheme

Rivkin Radler LLP

Robert Clark of Pompano Beach, Florida recently pleaded guilty to his role in a Medicare fraud scheme. Clark and his co-conspirators purchased Medicare Beneficiary Identification numbers unlawfully and then billed Medicare for over-the-counter COVID-19 test kits. The conspirators also paid illegal kickbacks and bribes to marketers for referring Medicare beneficiaries for genetic tests.

Approximately $30 million in fraudulent claims for test kits was billed to Medicare by Clear Choice Diagnostics, Inc., nominally owned by Clark, and Medicare paid the lab about $15 million. Clark pleaded guilty to conspiracy to defraud the U.S., to pay illegal health care kickbacks, and to purchase Medicare Beneficiary Identification numbers without lawful authority. He faces up to five years in jail when he is sentenced on June 20.