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Diagnostic Lab in Virgina to Pay $1.4 Million to Settle Charges of Violating False Claims Act

A diagnostic lab in Virginia has agreed to pay a restitution of $1.4 million to resolve allegations it violated the False Claims Act.

The company, Genetworx Laboratories, allegedly submitted or caused to be submitted claims to Medicare for genetic tests without proper oversight by a physician.

According to the settlement agreement, between July of 2014 and September of 2015, the company utilized services provided by sales representative Seth Rehfuss.

He persuaded groups of senior citizens who lived at various senior housing facilities to submit for genetic testing. Rehfuss did this even though Medicare requires proper orders come from the patient’s treating physician for that kind of test.

In turn, the company submitted payment claims to Medicare for the genetic tests performed by Rehfuss, even though they didn’t have valid oversight by a treating physician.

Rehfuss, who is from Somerset, New Jersey, pleaded guilty in federal court to charges of conspiracy to commit health-care fraud. He received a sentence of 50 months in jail back in May of 2019.