DOJ seizes $1M from COVID-19 test company on Medicare fraud allegations tied to Maryland – KAKE

BALTIMORE, Maryland (WBAL) -- The Department of Justice seized more than $1 million from a COVID-19 test company, alleging the company defrauded Medicare of at least $43 million, including some victims from Maryland, court documents obtained by 11 News Investigates show.

In May, the first two Maryland residents reached out to 11 News Investigates, saying their Medicare account numbers were charged for unwanted COVID-19 tests. More than 280 residents have contacted 11 News Investigates as of this week, saying the same thing happened to them.

The DOJ and FBI are now getting involved, pursuing one of the companies that charged Maryland residents without their permission.

Marilyn Manger and her husband said they requested the first shipment of COVID-19 tests, but as the months passed, the shipments of tests kept coming.

"Then, I saw your piece on WBAL news about the test fraud, and that made me suspicious as to maybe this is what had happened," Manger said.

Her invoice confirmed it. Her Medicare account number was charged for COVID-19 tests she never requested. When she reported the issue in early August, Medicare allowed her to change her account number. One of the companies that had charged her was SK Diagnostics Inc.

"I know the WBAL investigative team, and I know that you guys keep digging, but you just still don't think anything's going to happen," Manger said.

Earlier this month, a complaint filed in Illinois court revealed the DOJ and FBI seized a bank account belonging to SK Diagnostics containing more than $1.5 million. The complaint details much more, including allegations that the company committed health care fraud amounting to at least $43 million and submitted 471 claims to Medicare for people who died.

Manger was one of the 25,000 people who reported SK Diagnostics to Medicare in early August. She said it was tempting to sit back and do nothing.

"But I didn't, and I was just excited that I was that citizen that said, 'Oh, no, we're not going to do that," Manger said.

According to the federal complaint, law enforcement interviewed SK Diagnostics' president on June 27, and then later that day, the man bought a ticket to India and left the same day.

"It doesn't necessarily surprise me. I think that that's how these scams work. 'We'll stay as long as we can. Somebody gets close, we bail out," Manger said. "Because it's easy money, and it's all about let's make money without having to do the work and do it on the backs of those of us who worked our whole lives."

"I saw your piece on WBAL news about the test fraud, and that made me suspicious."

On Tuesday, 11 News Investigates reported about a different Illinois company that federal authorities charged on accusations the company defrauded Medicare for $31 million. Now, federal officials are trying to recoup at least $43 million with $1.5 million already seized.

In the long run, Manger told 11 News Investigates that these examples of large-scale fraud will impact Social Security and Medicare coverage for future generations.

"We all lose somewhere along the line, probably not in my lifetime, but maybe my grandchildren's lifetime," Manger said.

Roughly two weeks after Manger reported SK Diagnostics for fraud, Medicare revoked the company's ability to participate in the COVID-19 test program and suspended the company for three years.

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DOJ seizes $1M from COVID-19 test company on Medicare fraud allegations tied to Maryland - KAKE