WASHINGTON — A California-based clinical laboratory, Lab Genomics LLC, and its owner, Leena Dalal, have agreed to pay $1.25 million to the United States government to settle allegations that they violated federal law by paying illegal kickbacks to marketers in exchange for patient referrals.
According to the U.S. Department of Justice, the laboratory, based in Fountain Valley, California, allegedly paid commissions to three independent contractor marketers between January 2020 and September 2022. The payments were allegedly linked to the number and value of laboratory tests referred to the company by healthcare providers.
Federal authorities alleged that Lab Genomics and Dalal knowingly structured invoices to make the commission payments appear to be flat fees, concealing the actual nature of the financial arrangements.
The settlement resolves allegations that the company and its owner violated the False Claims Act and the federal Anti-Kickback Statute, which prohibits offering or receiving payments to influence referrals for services covered by Medicare, Medicaid and other federally funded healthcare programmes.
Assistant Attorney General Brett A. Shumate said kickback arrangements compromise the integrity of healthcare programmes, adding that the Justice Department would continue pursuing enforcement against those who profit from unlawful arrangements.
U.S. Attorney Eric Grant for the Eastern District of California said his office remained committed to investigating schemes that undermine safeguards protecting federal healthcare programmes.
The case originated from a whistleblower lawsuit filed by Sunil Wadhwa and Ken Newton under the False Claims Act. The law allows private individuals to bring legal action on behalf of the federal government and receive a portion of the money recovered. Under the settlement, the two whistleblowers will receive $225,000.
The investigation involved the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of California and the Department of Health and Human Services Office of Inspector General.
Federal authorities said the action reflects continuing efforts to combat healthcare fraud and protect taxpayer-funded programmes.
However, the Justice Department clarified that the claims resolved through the settlement are allegations only, and there has been no determination of liability against Lab Genomics LLC or its owner, Leena Dalal.