A federal judge has ordered a Norcross-based laboratory and its owner to pay more than 315 million dollars in restitution and penalties. The ruling follows allegations of a long-term scheme involving unnecessary genetic testing billed to Medicare and Medicaid.
Court records indicate the laboratory known as Oxy-Gen submitted thousands of claims for genetic tests that were never medically required. Allegations state that the lab performed tests based on referrals from physicians who had never treated or even seen the patients involved. Investigations also revealed that patients received fifty-dollar gift cards in exchange for providing DNA samples and personal insurance details.
The final judgment requires owner Jean-Francoise Toure to pay 44 million dollars in restitution along with 270 million dollars in civil penalties. While the business has closed its physical location in Gwinnett County, legal representatives for the whistleblower emphasize that government healthcare programs suffered massive financial losses from this activity. The United States government retains the right to pursue further action despite the current status of the civil case.
Jean-Francoise Toure denied the allegations in a recent phone interview. He claimed he could not afford to mount a legal defense during the proceedings. Both the owner and the company have since declared federal bankruptcy. Although no criminal charges currently exist against the owner, federal authorities indicate that the case merits remain a focus for government interest.