Source: United States Department of Justice
BOSTON – Laboratory Corporation of America (Labcorp), a national diagnostics testing laboratory, has agreed to pay $14.5 million to resolve allegations that it violated the False Claims Act by submitting medically unnecessary claims for urine drug testing (UDT) to Medicare for payment.
Source: United States Department of Justice Criminal Division
Laboratory Corporation of America (Labcorp), a national clinical diagnostics company, has agreed to pay $14,500,000 to resolve allegations that it violated the False Claims Act by submitting false claims to Medicare Part B (Medicare) for medically unnecessary urine drug testing (UDT) for some patients conducted pursuant to a testing panel offered by Labcorp, called “Toxassure Comprehensive.”
“The government expects that any testing it pays for is medically necessary and not wasteful or structured in a way that maximizes billing opportunities for providers at the expense of the federal fisc,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will continue to hold providers who do otherwise accountable.”
“Today’s settlement reflects my Office’s enduring commitment to combatting healthcare fraud and recovering taxpayer money. Labcorp’s conduct resulted in Medicare payouts for unnecessary tests,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “We will continue to hold accountable providers who engage in fraud, waste, and abuse.”
“Medicare beneficiaries and taxpayers should be able to trust that testing and billing practices are fair and appropriate,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “Today’s settlement makes clear that when providers put profits before patients and ignore billing rules, we will act decisively to hold them accountable.”
Labcorp’s Toxassure Comprehensive panel contained both “Presumptive” and “Definitive” UDT methods. In general, Presumptive UDT detects the presence or absence of certain drug classes subject to certain testing thresholds while definitive UDT identifies individual substances and their concentrations, where applicable. Medicare payment for UDT is based on bundled payment rates associated with the Current Procedure Terminology (CPT) or Healthcare Common Procedure Coding System (HCPCS) codes. In general, for laboratory-based Presumptive testing, Medicare pays a flat rate no matter the number of drug classes tested, pursuant to CPT code 80307, and for definitive testing Medicare pays a flat rate for 22 or more drug classes per HCPCS Code G0483.
As part of the settlement, Labcorp admitted, acknowledged, and accepted responsibility for the following facts:
The United States alleged that the full ToxAssure Comprehensive panel billed as described above resulted in the submission of medically unnecessary claims to Medicare for some of the patients for whom it was performed. Labcorp also represented in the settlement agreement that it has ceased billing to Medicare the combination of codes 80307 and G0483 for beneficiaries testing using the ToxAssure Comprehensive panel. Labcorp has been credited in this settlement under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases, Justice Manual §4-4.112.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with HHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud or 800-HHS-TIPS (800-447-8477).
This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
The matter was handled by Fraud Section Senior Counsel for Health Care Fraud Augustine Ripa and Assistant U.S. Attorney Abraham George for the District of Massachusetts. Investigative support was provided by HHS-OIG and the FBI.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Source: United States Department of Justice Criminal Division
A Nevada woman was sentenced today to 18 months in prison for conspiring to defraud the United States by filing false COVID-19 employment tax credits. The government recommended a sentence of 40 months’ imprisonment.
“The Fraud Division will not tolerate anyone who steals from public benefits programs designed to support Americans in need,” said Assistant Attorney General of the Justice Department’s National Fraud Enforcement Division Colin M. McDonald. “If you attempt to defraud these programs, we will come after you with the full force of federal law. We are committed to safeguarding America’s tax dollars and the programs they are meant to support.”
“Today’s sentence, once again, highlights our District’s commitment to the American taxpayer that when people commit fraud, they will face the legal consequences of those criminal acts,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada.
According to court documents and statements made in court, Adonia Stiles, of Las Vegas, was a real estate agent, tax preparer, and clothing store owner. Stiles conspired with others to file false tax returns fraudulently seeking refunds based on the employee retention credit (ERC) and sick and family leave credit. Congress created both the ERC and the sick and family leave credit to aid struggling businesses during the COVID-19 global pandemic.
Stiles caused one of her co-conspirators, Candies Goode-McCoy, to file 11 false employment tax returns for Stiles’s clothing store seeking a total of more than $800,000 in refundable tax credits. Stiles also referred 18 other people to Goode-McCoy, for whom Goode-McCoy filed over 150 false employment tax returns. Goode-McCoy claimed $15 million in fraudulent tax credits on behalf of these taxpayers, which resulted in the United States paying out more than $7 million in refunds. In exchange for making these referrals to Goode McCoy, Stiles received at least $135,000. She did not report this income on her individual income tax returns. In April 2026, Goode-McCoy was sentenced to 54 months in prison for her role in the scheme.
In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey ordered Stiles to serve two years of supervised release and to pay $7,079,121.48 in restitution to the United States.
IRS Criminal Investigation and the Treasury Inspector General for Tax Administration investigated the case.
Trial Attorney John C. Gerardi of the Criminal Division’s Tax Section and Assistant U.S. Attorney Richard Anthony Lopez of the District of Nevada prosecuted the case.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Source: United States Department of Justice Criminal Division
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, and Director of the Federal Bureau of Prisons (“BOP”), William K. Marshall III, announced today the unsealing of an Indictment charging KYLE BROWN, a former federal correctional officer with the BOP, with three counts of sexual abuse of a ward for engaging in sexual acts with an inmate he was responsible for guarding.
Source: United States Department of Justice Criminal Division
The Department of Justice’s Office of Justice Programs has awarded $6,361,777 to the Louisiana Commission on Law Enforcement (“LCLE”) to provide resources to help Louisiana agencies combat the drug epidemic, violent crimes, and to strengthen the juvenile justice system, announced U.S. Attorney Kurt L. Wall.
Source: United States Department of Justice Criminal Division
MACON, Ga. — U.S. Attorney William R. “Will” Keyes today announced that a federal grand jury has returned an eight-count indictment charging a couple with allegedly starving their son to death and abusing their pets, causing the death of one of their dogs.
Source: United States Department of Justice Criminal Division
DAVENPORT, Iowa – A Montezuma man was sentenced on July 8, 2026, to 15 years in federal prison for receiving child pornography and 11 counts of cyber stalking.According to public court documents and evidence presented at sentencing, Jack James Erselius, 20, procured and created computer-generated child pornography images of 13 different victims under the age of 18. Law enforcement seized electronic devices during a search of Erselius’ Story County residence. A forensic examination of the seized electronic devices showed that Erselius used the devices to create AI-generated images containing child sexual abuse material of real girls with their clothes removed. Erselius would send screenshots of satellite views of victims’ homes, their family’s contact information, and live updates on victim’s locations to the people online that Erselius solicited to stalk and rape the victims.
Source: United States Department of Justice Criminal Division
Tampa, Florida – A federal jury has found Julian Russell Clawson (43, Tampa) guilty of receiving, distributing, and possessing child sexual abuse material (CSAM). Clawson faces a minimum penalty of 15 years, up to 40 years, in federal prison for each count of receiving and distributing CSAM, and a minimum of 10 years, up to 20 years, in prison for possessing CSAM. He faces enhanced penalties in this case and a violation of supervised release based on a previous conviction for possessing CSAM. His combined violation and sentencing hearing will be held at a future date. U.S. Attorney Gregory W. Kehoe made the announcement.
Source: United States Department of Justice Criminal Division
Earlier today, in federal court in Central Islip, John B. Mensch, the owner and chief executive officer of a bus conglomerate based in Medford, Long Island, was sentenced by United States District Judge Nusrat J. Choudhury to 18 months in prison for bank fraud conspiracy. Judge Choudhury also ordered Mensch to pay restitution in the amount of $9,326,366.03. Mensch pleaded guilty to the charge in October 2024.
Source: United States Department of Justice Criminal Division
John Harold Rogers, 64, a former senior adviser for the Federal Reserve Board of Governors (FRB), was sentenced today in U.S. District Court to 38 months in federal prison in connection with making false statements to federal investigators about sharing restricted Federal Reserve information with Chinese intelligence operatives, announced U.S. Attorney Jeanine Ferris Pirro.