US agents raid genetic testing labs in Medicare fraud probe

FBI and other federal agents execute a search warrant on Clio Laboratories in Lawrenceville, Georgia in the US, on Friday. (Reuters)
Updated 29 September 2019
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US agents raid genetic testing labs in Medicare fraud probe

  • 35 people charged over one of largest federal healthcare fraud schemes
  • Scam estimated to have caused caused $2.1 billion in losses to federal healthcare insurance programs

WASHINGTON: US federal agents raided genetic testing laboratories, and 35 people were criminally charged in four states in a crackdown on genetic testing fraud that officials said caused $2.1 billion in losses to federal healthcare insurance programs.

Officials at the Justice Department and Health and Human Services Department Office of the Inspector General said that charges were filed in Florida, Texas, Louisiana and Georgia in “one of the largest healthcare fraud schemes ever charged.”

Among those facing charges was Khalid Satary of Suwanee, Georgia, owner of Clio Laboratories in Lawrenceville, Georgia, who was accused in an indictment of soliciting medically unnecessary genetic cancer tests and paying illegal bribes and kickbacks. Satary is a convicted felon who previously ran a toxicology lab that went bust in 2016 amid an ongoing federal probe into illegal kickbacks.

Several labs connected to Satary, including Clio, were featured in a special report by Reuters on Wednesday that raised questions about Clio’s Medicare billing practices and whether genetic tests the lab performed on elderly people were medically necessary.

A Reuters journalist early on Friday witnessed agents from the FBI and the US Department of Health and Human Services inspector general’s office search Clio, Elite Medical Laboratories and medical billing company Laboratory Experts, which are all located in the same business complex. All three of those companies are connected to Jordan Satary, the son of Khalid Satary. Neither father nor son could be reached for comment.

Victoria Nemerson, Clio’s general counsel, did not respond to requests for comment. Nemerson previously said that Clio’s testing is proper and that the firm commits “substantial time and resources to meeting our legal duties.”

The use of genetic testing, which helps people to determine their risks of developing cancer and other diseases, has skyrocketed in the US since 2015.

For Medicare, the public insurance program for elderly and disabled Americans, payouts for genetic tests jumped from $480 million in 2015 to $1.1 billion in 2018, a Reuters analysis found.

Genetic testing has sparked more than 300 federal investigations involving healthcare fraud and illegal kickbacks.

The fraud schemes typically involved marketers’ hiring sales reps to get elderly people to provide a cheek swab that they are told could be tested to help them understand their risks of developing cancer or whether their genetics could unlock clues about how they will respond to drug treatments. Doctors signed off on the tests as being medically necessary, and the swabs were sent for testing to labs that sought Medicare payments. But many of the lab tests are not relevant to the patient’s history, and some of the doctors sign off on the results without conferring with the patient, investigators say.

By law, all diagnostic lab tests must be ordered by a doctor treating a patient for a specific condition.

Others charged included Minal Patel, the founder of Georgia-based LabSolutions, and Jamie Simmons, the founder of two telemedicine companies called MedSymphony and Meetmydocc.

Lawyers for Patel and Simmons could not be immediately reached.

Patel is accused of defrauding the Medicare and Medicaid insurance programs in connection with genetic cancer tests and paying kickbacks. Simmons is charged with conspiring to commit healthcare fraud and paying and receiving kickbacks that led to Medicare billings of more than $56 million.


Trump and Zelensky make nice after tensions over Ukraine war

Updated 39 min 8 sec ago
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Trump and Zelensky make nice after tensions over Ukraine war

  • Zelensky later said he presented Ukraine's "Victory Plan" to Trump and "we thoroughly reviewed the situation in Ukraine and the consequences of the war for our people”
  • The Ukrainian leader ehad met Trump’s election rival Kamala Harris, as well as President Joe Biden, on Thursday in Washington and both pledged their support for Ukraine

NEW YORK: Donald Trump and Volodymyr Zelensky held high-stakes talks Friday following several attacks by the White House hopeful on the Ukrainian president as the looming American election raises questions over long-term US support for ally Kyiv in its war with Russia.
Foreign policy hawks have voiced fears that a second Trump term would spell disaster for Ukraine’s defense, as the Republican has repeatedly defended Russia’s President Vladimir Putin while voicing skepticism over US funding for Kyiv.
Zelensky had met Trump’s election rival Kamala Harris, as well as President Joe Biden, on Thursday in Washington and both pledged their support for Ukraine.
Trump — who this week accused Zelensky of refusing to “make a deal” to end the conflict — vowed to bring peace if he wins a second term in office as the two men addressed reporters after their tete-a-tete at Trump Tower in New York.
“It’s a shame but this is a war that should have never happened and we’ll get it solved. It is a complicated puzzle,” Trump said. “Too many people dead. Too many beautiful cities.”

Before the meeting, which lasted less than an hour, the former US president had hailed his alliance with Zelensky but added: “I also have a very good relationship — as you know — with President Putin.”
Zelensky responded that the pair shared a “common view that the war in Ukraine has to be stopped” and that it is imperative that Ukraine prevail.
Later in a post on X, Zelensky described the meeting as “very productive.”
“I presented him our Victory Plan, and we thoroughly reviewed the situation in Ukraine and the consequences of the war for our people,” Zelensky wrote. “Many details were discussed. I am grateful for this meeting. A just peace is needed.”
The meeting initially looked like it would be scrapped after Zelensky told The New Yorker magazine that Trump “doesn’t really know how to stop the war” and that his running mate J.D. Vance is “too radical.”
The interview was published amid outcry over the Ukrainian leader’s trip to Pennsylvania, a critical US election battleground, with Democratic politicians to thank US workers for manufacturing ammunition that is helping Kyiv’s war effort against Moscow.
House Republicans have launched investigations into the trip, suggesting it amounted to election interference, and calling for Ukraine’s ambassador in Washington to be fired.
Trump, who refused to say whether he wants Ukraine to defeat Russia during his debate with Harris earlier this month, hit back at Zelensky at a campaign rally Wednesday in North Carolina, berating him as “a man who refuses to make a deal” for peace.
Zelensky is in New York this week for the UN General Assembly, and has been looking to shore up support for his country’s war effort as it struggles on the battlefield in the third year of Moscow’s invasion.
The Ukrainian leader presented a so-called “victory” plan to Biden and Harris at the White House on Thursday, with Biden announcing a new military aid package worth nearly $8 billion for Kyiv.

Standing with Zelensky at her side, Harris did not mention Trump by name but said there were “some in my country who would instead force Ukraine to give up large parts of its sovereign territory.”
Zelensky said Friday that his talks in the United States went “exactly as needed.”
“The Victory Plan has been presented to America, and we explained each point in detail. Now, our teams will work to implement every step and decision,” he wrote on social media.
However, the row with Trump underscored how November’s US election could upend the support that Ukraine receives from its biggest backer.
Trump has echoed many of Putin’s talking points, saying at a rally earlier this week that Ukraine could not beat Russia, highlighting its 1812 defeat of Napoleon but ignoring more recent military defeats.
When Trump was president, he asked Zelensky for potentially damaging political material on Biden ahead of the 2020 election while withholding vital military aid that had already been approved by Congress — leading to the first of his two impeachments.
But the Republican had maintained good relations with Zelensky, pleased that the Ukrainian defended him over his conduct. Trump spent much of the impromptu news conference reminding reporters of Zelensky’s support.
 


French pay tribute to student murdered in Paris

Updated 27 September 2024
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French pay tribute to student murdered in Paris

  • The killing of 19-year-old student has led to fresh demands to crack down on illegal immigration

VERSAILLES, France: Nearly 3,000 people on Friday attended the funeral of a Paris student who was raped and murdered in a case that has inflamed a French debate on migration after a Moroccan was named as the suspected attacker.

The killing of the 19-year-old, named only as Philippine, whose body was found half-buried in a park in western Paris, has led to fresh demands to crack down on illegal immigration.
A 22-year-old Moroccan arrested in Geneva has been named as the suspected attacker.
Mourners packed Saint-Louis Cathedral in Versailles outside Paris for the funeral, with many waiting outside as the student’s wooden coffin was carried in.
“I thought it was important to come here to reflect and pay my respects,” said one 15-year-old girl, clutching a bouquet of white and purple flowers.

FASTFACT

A 22-year-old Moroccan arrested in Geneva has been named as the suspected attacker.

The girl’s mother, Anouck B., said many people were affected by the tragedy. “It was important to come and support the whole family,” she said.
The Moroccan suspect is expected to be extradited to France. French authorities say he had been previously convicted of rape and been the subject of an expulsion order.
On Thursday, President Emmanuel Macron, speaking on a visit to Montreal, called Philippine’s murder “a heinous and atrocious crime” and added that “we need to protect the public better.”
The conservative interior minister, Bruno Retailleau, has vowed to change immigration rules after the murder.
The student’s body was found in the Bois de Boulogne Park, not far from Paris-Dauphine University in the affluent 16th district.
According to prosecutors, the suspect was convicted in 2021 of a rape committed in 2019 when he was a minor.
He was released in June, served his sentence, and placed in an administrative detention center.
In early September, a judge freed him on condition he reported regularly to the authorities.
Since the murder, conservative and far-right politicians have urged harsh measures, saying deportation orders are not enforced properly.
“How many tragedies will France endure before our leaders react?” Jordan Bardella, leader of the far-right National Rally, said on the X social media platform.
However, some rights groups and left-wingers said the focus should not be on immigration but rather “feminicide.”
“Misogyny kills. Let’s not have the wrong debate,” said the women’s rights group CIDFF.

 


Iranian operatives charged in the US with hacking Donald Trump’s presidential campaign

Updated 27 September 2024
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Iranian operatives charged in the US with hacking Donald Trump’s presidential campaign

  • Three accused hackers were employed by Iran’s paramilitary Revolutionary Guard, Justice Department said
  • Trump campaign said on Aug. 10 it had been hacked, Iranian actors stole sensitive internal documents

WASHINGTON: The Justice Department unsealed criminal charges Friday against three Iranian operatives suspected of hacking Donald Trump’s presidential campaign and disseminating stolen information to media organizations.
The three accused hackers were employed by Iran’s paramilitary Revolutionary Guard and their operation also targeted a broad swath of targets, including government officials, members of the media and non-governmental organizations, the Justice Department said.
The Trump campaign disclosed on Aug. 10 that it had been hacked and said Iranian actors had stolen and distributed sensitive internal documents. Multiple major news organizations that said they were leaked confidential information from inside the Trump campaign, including Politico, The New York Times and The Washington Post, declined to publish it.
US intelligence officials subsequently linked Iran to a hack of the Trump campaign and to an attempted breach of the Joe Biden-Kamala Harris campaign. They said the hack-and-dump operation was meant to sow discord, exploit divisions within American society and potentially influence the outcome of elections that Iran perceives to be “particularly consequential in terms of the impact they could have on its national security interests.”
Last week, officials also revealed that the Iranians in late June and early July sent unsolicited emails containing excerpts of the hacked information to people associated with the Biden campaign. None of the recipients replied. The Harris campaign said the emails resembled spam or a phishing attempt and condemned the outreach to the Iranians as “unwelcome and unacceptable malicious activity.”
The indictment comes at a time of heightened tensions between Washington and Tehran as Iran-backed Hezbollah and Israel escalate attacks against each other, raising concerns about the prospect of an all-out war, and as US officials say they continue to track physical threats by Iran against a number of officials including Trump.


US charges British man over ‘hack-to-trade’ scheme

Updated 27 September 2024
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US charges British man over ‘hack-to-trade’ scheme

  • The US Department of Justice will seek the extradition of Robert Westbrook, 39, of London, to face securities fraud, wire fraud and five computer fraud charges
  • Westbrook was arrested this week in the United Kingdom, and also faces related US Securities and Exchange Commission civil charges

WASHINGTON: A British man has been arrested and charged by US authorities with hacking into the computers of five companies to obtain details about their expected earnings and making $3.75 million of illegal profit by trading before results were released.
The US Department of Justice will seek the extradition of Robert Westbrook, 39, of London, to face securities fraud, wire fraud and five computer fraud charges contained in a criminal indictment made public on Friday.
Westbrook was arrested this week in the United Kingdom, and also faces related US Securities and Exchange Commission civil charges. His lawyer could not immediately be identified.
The companies were not identified by name in court papers filed in federal court in Newark, New Jersey.
Financial and stock price details in the SEC complaint suggest the companies are food container maker Tupperware, general contractor Tutor Perini, software provider Guidewire Software, gas station operator Murphy USA and telecommunications equipment maker Lumentum Holdings.
Authorities said Westbrook’s “hack-to-trade” scheme involved gaining access to executives’ email accounts between January 2019 and May 2020, and using material nonpublic information to buy stocks and options prior to at least 14 earnings announcements.
On several occasions, Westbrook allegedly implemented rules to have content from executives’ email accounts automatically forwarded to his own accounts.
Jorge Tenreiro, acting chief of the SEC’s crypto assets and cyber unit, called Westbrook’s activity a “sophisticated international hacking,” including the use of anonymous email accounts, VPN services, and bitcoin to conceal wrongdoing.
None of the five companies was accused of wrongdoing.
The securities fraud and wire fraud counts each carry a maximum 20-year prison term, while each computer fraud count carries a maximum five-year term.


US fines Air Canada over flights over prohibited Iraqi airspace

Air Canada. (Twitter @AirCanada)
Updated 8 sec ago
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US fines Air Canada over flights over prohibited Iraqi airspace

  • Air Canada must pay $125,000 of the fine and owes another $125,000 if it violates the order again within a year.

 

WASHINGTON: The US Department of Transportation said Friday it had fined Air Canada $250,000 for operating flights in 2022 and 2023 in prohibited Iraqi airspace.
The agency had jurisdiction because those flights had United Airlines’ designator code. The violations occurred on numerous flights between the United Arab Emirates and Toronto in airspace that was prohibited by the Federal Aviation Administration to US operators.
Air Canada must pay $125,000 of the fine and owes another $125,000 if it violates the order again within a year. Air Canada stopped codesharing with United on the route in January 2023. Emirates was fined $1.5 million by the Transportation Department in June for operating flights carrying JetBlue Airways’ code over Iraqi airspace.