DOJ Sues Georgia Lab Executives for Defrauding Medicare by Targeting Faith-Based Communities and Seniors

The U.S. Department of Justice has filed a False Claims Act lawsuit against two executives of Capstone Diagnostics, an Atlanta-based clinical laboratory, alleging they ran schemes to defraud Medicare by offering unlawful kickbacks to faith-based organizations and senior citizens in exchange for unnecessary testing. The complaint contends that ordered tests lacked individualized clinical judgment from treating providers, resulting in millions of dollars in improper Medicare payments. Additional defendants include a former spouse and several affiliated entities alleged to have received proceeds from the fraudulent conduct.

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