Indian-American lab owner charged in alleged multi-million kickback scheme


A resident of Monroeville, Pennsylvania, was charged in federal court with three conspiracy counts and one substantive count related to the payment of unlawful kickbacks, United States Attorney for the Western District of Pennsylvania, Scott W. Brady, announced Nov. 26.

Ravitej Reddy, 52, was charged by criminal Information with two counts of conspiracy to pay and receive kickbacks, one count of conspiracy to pay kickbacks, and one count of offering and paying kickbacks.

According to the Information, Reddy owned two testing laboratories—Personalized Genetics, LLC, d/b/a Personalized Genomics (PGL), located in Pittsburgh, and Med Health Services Management, LP (MHS), located in Monroeville.

Beginning as early as May 2018, and continuing through approximately April 12, 2019, the Information alleges that the Reddy participated in three separate conspiracies related to Medicare billing for two types of genetic testing: cancer genomic testing (CGx) and pharmacogenetic testing (PGx).

As alleged, the defendant and a group of co-conspirators comprising business consultants, marketers, and the operator of a telemedicine entity, among others, acquired thousands of testing samples from Medicare beneficiaries located throughout the United States, as well as the corresponding prescriptions that PGL and MHS needed to bill Medicare for CGx and PGx testing.

According to the Information, the defendant allegedly caused PGL and MHS to submit Medicare claims for CGx and PGx testing that regularly exceeded $12,000 per beneficiary. In total, between May 2018 and April 12, 2019, the defendant’s laboratories billed Medicare more than $127 million for CGx and PGx testing, with reimbursements of approximately $60 million, prosecutors allege.

If convicted for each of the three conspiracy counts, Reddy faces a maximum sentence of five years in prison, a fine of $250,000, or both. For the substantive kickback charge, he faces a maximum sentence of 10 years in prison, a fine of $250,000, or both.



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