Seattle – A resident of Astoria, Oregon was sentenced right now in U.S. District Courtroom in Seattle to 2 years in jail for 5 federal felonies linked to his scheme to revenue from unlawful kickbacks within the medical testing trade, introduced U.S. Lawyer Nick Brown. Richard Reid, 53, was convicted in March 2022, following a six-day jury trial. At right now’s sentencing listening to, U.S. District Decide John C. Coughenour denied a protection movement to postpone the jail sentence whereas Reid appeals his conviction.
“Mr. Reid was the architect of a scheme to illegally revenue on toxicology checks that had been paid for by authorities insurance coverage,” mentioned U.S. Lawyer Brown. “The online of referrals and kick-backs led to important income for NWPL and its homeowners. Such unlawful kick-backs merely inflate medical prices for the remainder of us.”
The actions of Bellevue-based Northwest Physicians Laboratory (NWPL) have been the topic of intensive civil and legal litigation. Richard Reid was one of many homeowners and the Vice President of Gross sales for NWPL. Reid helped NWPL receive greater than $3.7 million in kickback funds by steering urine drug check specimens to 2 labs that would invoice the federal government for testing. This resulted in authorities funds to these two labs of greater than $6.5 million.
In line with information filed within the case between January 2013 and July 2015, two labs, that weren’t doctor owned, made funds to NWPL in change for referrals of Medicare and TRICARE program enterprise, in violation of the Anti-Kickback Statute. Paying remuneration to medical suppliers or provider-owned laboratories in change for referrals encourages suppliers to order medically pointless providers. The Anti-Kickback Statute capabilities, partially, to discourage such habits. NWPL was physician-owned, and for that motive couldn’t check urine samples for sufferers lined by authorities well being packages comparable to Medicare, Medicaid, and TRICARE. With the intention to conceal the cost of the kickbacks, Reid and different co-conspirators concerned described the charges as being for advertising and marketing providers; nevertheless, no advertising and marketing providers had been carried out.
Within the sentencing memo asking that Reid obtain the identical two-year sentence as CEO Jae Lee, prosecutors described his position writing, “Reid hid the reality and saved the duvet story in place by mendacity to his gross sales power, mendacity to suppliers, and sharing fraudulent opinion letters from attorneys. NWPL grew and the cash – together with unlawful kickbacks – rolled in. The kickbacks elevated as time went on, and totaled virtually $5 million. Because the proceeds of the crime rose, so did Reid’s month-to-month distributions — from $10,000 in 2013 to $50,000 in 2015.”
Reid was convicted of 1 depend of conspiracy to solicit and obtain kickbacks involving well being care packages and 4 counts of receipt of kickbacks.
The corporate, NWPL, pleaded responsible in February 2021 and was sentenced to pay $8,114,417 in restitution joint and a number of other with the opposite legal defendants. NWPL has dissolved. Up to now, the labs and people concerned on this investigation have paid more than $14 million to settle related civil allegations.
Along with Reid, three different defendants have pleaded responsible and await sentencing. Former NWPL CEO Jae Lee was sentenced to 2 years in jail in Could 2022. Kevin Puls, the previous Govt Director of NWPL was sentenced to 90 days in jail and a yr of supervised launch.
“Mr. Reid’s sentencing culminates his half in a years-long investigation whereby he was convicted final yr for actively orchestrating and personally benefiting from a scheme to deprave and defraud the healthcare system, together with the Division of Protection’s TRICARE program,” mentioned Bryan D. Denny, the Particular Agent in Cost of the DoD Workplace of Inspector Basic, Protection Felony Investigative Service (DCIS), Western Subject Workplace. “DCIS will proceed to work with its companions to root out fraudulent actions, like these on this explicit investigation, that weaken TRICARE and inevitably enhance prices unnecessarily.”
“Mr. Reid let his greed get in the way in which of doing what was proper by taxpayers” mentioned Richard A. Collodi, Particular Agent in Cost of the FBI’s Seattle area workplace. “He solicited and acquired tons of of hundreds of {dollars} in kickbacks. In the end, frauds like these inflate well being care prices for the remainder of us. I applaud the work of our investigators and companions to carry Mr. Reid accountable, present justice to the victims, and convey his crimes to an finish.”
The case was investigated by the FBI, Well being and Human Companies Workplace of Inspector Basic (HHS-OIG), and the Protection Felony Investigative Service (DCIS).
The case was prosecuted by Assistant United States Lawyer Michael Dion and former Assistant United States Lawyer Brian Werner.