A federal judge has ordered a former Gwinnett County laboratory and its owner to pay more than $315 million in restitution and civil penalties in a civil fraud case involving genetic testing billed to Medicare and Medicaid.
According to a default judgment issued in federal court, Oxy-Gen and its owner, Jean-Francoise Toure, must pay approximately $44 million in restitution to the government and another $270 million in civil penalties.
The judgment stems from allegations that the Norcross laboratory billed government healthcare programs for thousands of expensive genetic tests that patients did not need.
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“The Medicare and Medicaid program were defrauded to the tune of tens of millions of dollars here,” said Janel Quinn, an attorney with The Employment Law Group who represents the whistleblower in the case along with Atlanta-based law firm Moore Hall.
The lawsuit centered on genetic testing performed at the Gwinnett County laboratory. The complaint alleged Oxy-Gen was “performing tests based on referrals by doctors who have never seen or treated the patient.”
The complaint also alleged that patients received $50 gift cards in exchange for providing DNA samples and insurance information.
“We allege that these tests were not medically necessary,” Quinn said.
Channel 2 Action News visited the former Oxy-GEN office in Norcross and found the business shuttered. Court records indicate Medicare and Medicaid paid more than $14 million for testing conducted through the lab.
According to his LinkedIn profile, Toure is now running another laboratory at a Texas clinic. He agreed to speak with Channel 2 Action News by phone and denied the allegations.
“They say you committed $44 million in Medicare and Medicaid fraud,” Channel 2 Consumer Investigator Justin Gray said.
“This is not true,” Toure responded.
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Toure said he could not afford to defend himself in court.
“I didn’t do anything fraudulent about enticing anybody in doing the testing. If I had done it, I would have been in jail. I didn’t do it,” Toure said.
This is a civil judgment. There are no criminal charges against Toure.
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But in a statement to Channel 2 Action News, U.S. Attorney Theodore Hertzberg said:
“The government’s decision not to act at a particular point in a specific case is not necessarily a reflection of the case’s merit, and the government retains its right to intervene later.”
The order requires Toure to pay back millions to the federal ands state programs that were allegedly defrauded.
“The government is very much still the real party in interest to the case because they’re the one that has been financially harmed,” she said.
Both Oxy-Gen and Toure have declared federal bankruptcy.
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