The United States has obtained more than $370 million in judgments against a Kentucky businessman and his companies for a laboratory testing scheme that targeted the Medicare program. In August 2022, the United States filed a complaint against Rajen Shah and his companies United Diagnostics Lab, Tomoka Medical Lab, Tennessee Valley Regional Laboratory, Luminus Diagnostics, and Golden Rule Management for violations of the False Claims Act. The complaint alleged that Shah caused his laboratories to bill Medicare for expensive molecular tests that were not ordered by a licensed healthcare provider. 

On September 21, 2023, the district court granted the United States’ motion for default judgment and awarded judgment in favor of the United States and against the defendants in the amount of $105,634,097.50 for Shah, $6,159,118 for Tomoka Medical Lab, Inc., $23,996,305.50 for Tennessee Valley Regional Laboratories, LLC, $75,478,674.00 for Luminus Diagnostics, LLC, $105,634,097.50 for Golden Rule Management, LLC, and $54,587,325.00 for United Diagnostics Lab, LLC.

In 2021, Shah received a jail sentence for a criminal contempt charge stemming from his violation of court orders related to the United States’ fraud investigation.  

JEFFREY NEWMAN IS A WHISTLEBLOWER LAWYER WHO HANDLES HEALTHCARE FRAUD CASES UNDER THE FALSE CLAIMS ACT (FCA)(QUI TAM) AND HE CAN BE REACHED AT JEFF@JEFFNEWMANLAW.COM