CT Man Charged in $500M COVID-19 Test Billing Fraud Scheme

Why this matters: This fraud scheme highlights the potential for abuse within the healthcare system, particularly during public health emergencies. It also underscores the importance of oversight and accountability in the billing of medical services.

Dr. Martin Perlin, 74, of Fairfield, Conn., and Cemhan “Jimmy” Biricik, 46, of Boca Raton, Fla., face charges of conspiracy to commit health care fraud and multiple counts of health care fraud. According to the U.S. Attorney for the Eastern District of Michigan, Perlin, as a medical director for Fast Lab Technologies, LLC, ordered the majority of the tests, while Biricik served as the CEO. Fast Lab ran a website offering free COVID tests, but allegedly used the collected insurance information to fraudulently bill various insurers for antigen and PCR tests. The indictment claims that the tests were often not observed by medical professionals, saliva samples were not properly collected, and PCR testing was not performed, despite being billed as such. This scheme resulted in over $500 million in fraudulent claims, with over $50 million being paid out.

How to Prepare:

Who This Affects Most: This scheme affects taxpayers, insurers, and individuals who may have unknowingly had their insurance information used fraudulently. It also undermines trust in the healthcare system.

They were charged with conspiracy to commit health care fraud and multiple counts of health care fraud.

Over $500 million in claims were submitted, with over $50 million being paid out.

Medicare, Medicaid, TRICARE, and other private insurers were affected.

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