COVID TESTING SCAM: Venice-based Sameday Health agreed to pay $26 million to settle allegations they faked or falsified the COVID-19 test results of hundreds of customers.
A Venice-based COVID-testing chain has agreed to a $26 million settlement to settle allegations that it faked and forged test results, and engaged in false advertising and insurance fraud.
The settlement announced Thursday by Los Angeles City Attorney Mike Feuer requires Sameday Health, its CEO Felix Huettenbach, and Los Angeles-based Dr. Jeff Toll to pay nearly $26.5 million, which includes more than $12.4 million in restitution and almost $14 million in civil penalties for their roles in the scam.
"It's beyond outrageous that anyone would falsify COVID tests, as we allege happened here. If you get a negative test, you assume it's safe to go to work, visit family and friends, or take a vacation," Feuer said in a statement."But the victims of this alleged scheme might unknowingly have spread COVID to others or failed to receive timely and appropriate care themselves.
Sameday Health and Huettenbach required customers seeking a test to first undergo an unnecessary consultation with Toll if they were paying with insurance, which was then billed approximately $450 for the telehealth visit, according to the complaint. In exchange for steering customers to him, Toll allegedly gave Sameday Health a large portion of his profits from the consultations as a kickback.
Sameday Technologies, which does business as Sameday Health, operates 55 testing locations across the nation, with 16 in Los Angeles County and five in the city of Los Angeles, according to Los Angeles City Attorney Mike Feuer.Thanks for reading CBS NEWS.Please enter valid email address to continue
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