Crime & Courts

This Lexington man defrauded the government out of $51 million

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Do you suspect someone of committing fraud, waste, or abuse against Social Security? SSA’s OIG Fraud Hotline takes reports of alleged fraud, waste, or abuse.

A Lexington man and two co-conspirators were found liable for defrauding the government of more than $51 million.

Lexington’s Floyd Calhoun “Cal” Dent, III, in addition to Robert Bradford Johnson and LaTonya Mallory were found liable for defrauding the federal healthcare programs Medicare and Tricare of over $51 million, according to the U.S. Attorney’s Office.

The verdict was unanimous and it was handed down by a federal jury in Charleston on Jan. 31.

Dent, Bradford and Mallory paid illegal kickbacks to physicians across the country in order to get them to order medically unnecessary blood tests from Health Diagnostics Laboratory, Inc. (“HDL”) of Richmond, Va., and laboratory Singulex, Inc. of Alameda, Calif., in violation of the Anti-Kickback Statute and the False Claims Act, according to the U.S. Attorney’s Office.

Dent, Bradford and Mallory arranged for “process and handling fees” of $17 to be paid to the physicians per referral and for the routine waiving of patient co-pays and deductibles, according to the U.S. Attorney’s Office. As a result of those kickbacks, physicians referred patients’ blood samples to HDL and Singulex for medically unnecessary blood tests.

HDL and Singulex then submitted fraudulent claims to federal health care programs Medicare and Tricare for payment for the medically unnecessary tests, the U.S. Attorney’s Office said.

“This jury verdict sends a strong message of accountability to those who would seek to take advantage of federal health care programs,” First Assistant U.S. Attorney Lance Crick said, according to coladaily.com. “The District of South Carolina will continue to battle against Medicare and Tricare fraud.”

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