In a flagrant case of healthcare fraud, two individuals have been convicted in a scheme that siphoned millions from Medicare and Medicaid. According to a press release from the U.S. Attorney's Office, Middle District of Tennessee, Fadel Alshalabi and Samuel Harris engaged in illegal kickbacks and money laundering as part of their complex fraud operation. Alshalabi, the chief executive of Crestar Labs, LLC, alongside Harris, who ran Flojo Recruiting d/b/a Secure Health, manipulated the system through sham contracts and the exploitation of vulnerable demographics, including the elderly and low-income individuals, to acquire DNA swabs for genetic tests.
The trial, which spanned seven weeks, culminated in a verdict that saw Alshalabi and Harris guilty of conspiracy to violate and violations of the Anti-Kickback Statute. Alshalabi was also convicted of money laundering, and these convictions carry the potential for substantial prison time, as reported by the U.S. Attorney's Office, Middle District of Tennessee. Targeted were the beneficiaries of federal healthcare programs, where marketers not certified as healthcare professionals collected DNA through methods such as door-to-door solicitation and at senior fairs, and fake telemedicine doctors would subsequently rubber-stamp the tests sent to Crestar for kickbacks.
The investigative efforts of the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI Nashville Field Office unraveled a labyrinthine network of deceit with state partners across the board, identifying co-conspirators who have also pleaded guilty. Their sentencing will follow Alshalabi and Harris's, who are slated to receive their judgment on March 5 and 6, 2025, with each facing up to 10 years for violating the Anti-Kickback Statute and an additional 5 for conspiracy, as per the U.S. Attorney's Office, Middle District of Tennessee. Alshalabi also is looking at up to 10 years for money laundering, this thorough investigative work ensures those who attempt to undermine public trust and deplete resources intended for the sick and the impoverished will face repercussions proportionate to their crimes.
