Two individuals have been charged in connection with a scheme that allegedly defrauded federal and private health insurance programs out of more than $500 million through false billing for COVID-19 testing services, according to an announcement from United States Attorney Jerome F. Gorgon Jr.
Cemhan “Jimmy” Biricik, 46, of Boca Raton, Florida, and Dr. Martin Perlin, 74, of Fairfield, Connecticut, face charges including conspiracy to commit health care fraud and over 50 substantive counts of health care fraud. Biricik served as the Chief Executive Officer of Fast Lab Technologies, LLC (Fast Lab), while Dr. Perlin acted as the company’s Medical Director and ordered most of the tests. Both were arrested on the morning of July 31.
The indictment states that Fast Lab operated a website during the COVID-19 pandemic offering “free” tests to users who provided their insurance information online. Authorities allege that this information was then used to submit fraudulent claims to Medicare, Medicaid, TRICARE, and other insurers for both antigen and PCR tests on multiple dates per beneficiary. The claims asserted that antigen tests were observed by medical professionals and that saliva samples were collected and tested; however, officials say most antigen tests were taken at home without observation, saliva samples were not collected or returned to Fast Lab, and PCR testing did not occur.
Dr. Perlin is accused of acting as the ordering physician despite lacking any treating relationship with those whose names appeared on test orders. Insurance claims were also reportedly submitted before beneficiaries even received their test kits. Prosecutors allege Biricik billed or caused to be billed more than $500 million in claims for these unrendered services and received over $50 million in payments.
United States Attorney Gorgon was joined in announcing the charges by representatives from several federal agencies involved in investigating the case: Special Agent in Charge Mario Pinto (HHS-OIG), Special Agent in Charge Cheyvoryea Gibson (FBI Detroit Division), Special Agent in Charge Derek M. Holt (OPM-OIG), Acting Assistant Secretary Janet Dhillon (DOL-EBSA), Acting Special Agent in Charge Christopher Silvestro (DCIS), Special Agent in Charge Karen Wingerd (IRS-CI Detroit Field Office), Special Agent in Charge Megan Howell (DOL-OIG Great Lakes Region), Acting Inspector Sean McStravick (USPIS), U.S. Marshal Owen Cypher for Eastern District of Michigan, and Michigan Attorney General Dana Nessel’s Medicaid Fraud Control Unit.
Authorities remind the public that an indictment is not evidence of guilt; both defendants are presumed innocent unless proven guilty beyond a reasonable doubt at trial.
The investigation is being conducted by agents from HHS-OIG, FBI, OPM-OIG, DOL-EBSA, DCIS, MFCU, IRS-CI, DOL-OIG, USPIS and the U.S. Marshal’s Service. The prosecution team includes Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka from the Eastern District of Michigan; Ryan T. Nees from the Southern District of New York also contributed.
