Great Lakes Wire

Two individuals have been charged in connection with a $500 million scheme involving fraudulent billing for COVID-19 testing services, according to an announcement from United States Attorney Jerome F. Gorgon Jr. The case centers on allegations that Medicare, Medicaid, TRICARE, and other health insurance programs were billed for tests that were never provided.

Cemhan “Jimmy” Biricik, 46, of Boca Raton, Florida, served as the Chief Executive Officer of Fast Lab Technologies, LLC (Fast Lab), while Dr. Martin Perlin, 74, of Fairfield, Connecticut was the company’s Medical Director. Both face charges of conspiracy to commit health care fraud and more than 50 counts of health care fraud. They were arrested earlier today.

According to the indictment, Fast Lab operated a website during the COVID-19 pandemic offering “free” COVID tests. Users who visited the site were asked for their insurance information. The indictment alleges that this information was then used to submit fraudulent claims to various insurers for both antigen and PCR tests on multiple dates per beneficiary.

The claims stated that antigen tests had been observed by medical professionals and that saliva samples were collected and tested in a laboratory setting. However, authorities allege most antigen tests—if taken at all—were self-administered at home without professional observation; saliva samples were not collected or returned; and no PCR testing was performed. Dr. Perlin is accused of ordering these tests despite not having a treating relationship with those being tested. Additionally, it is alleged that Fast Lab submitted insurance claims before test kits had even been delivered.

Biricik is accused of billing or causing to be billed over $500 million in claims and receiving more than $50 million in payments.

“An Indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt,” said Gorgon.

The investigation involves several agencies including HHS-OIG, FBI, OPM-OIG, DOL-EBSA, DCIS, MFCU, IRS-CI, DOL-OIG, USPIS and the U.S. Marshal’s Service. Prosecution is being led by Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka from the Eastern District of Michigan with assistance from Assistant United States Attorney Ryan T. Nees from the Southern District of New York.