Hasan “Lucas” Seyhun, the former chief operating officer of New York-based Fast Lab Technologies LLC, has pleaded guilty to conspiracy to commit health care fraud for his role in a nationwide scheme that generated more than $500 million in fraudulent claims to government-backed health care programs, the U.S. Department of Justice said.
Seyhun, 45, of Miami, Florida, pleaded guilty on September 23, according to the U.S. Attorney’s Office for the Eastern District of Michigan. The case centers on COVID-19 testing services that Fast Lab offered to customers at no cost during the pandemic.
According to court documents cited by the DOJ, Fast Lab used customers’ insurance information to submit claims for medical services that were never provided. The alleged fraudulent claims asserted that medical professionals observed antigen tests, medical personnel collected saliva samples, and PCR tests were performed on those samples.
The DOJ said Seyhun admitted that, as Fast Lab’s COO, he helped orchestrate the submission of millions of dollars in fraudulent health care claims. The scheme resulted in at least $35 million in illicit payments, the department said.
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Seyhun has agreed to a $4.31 million forfeiture money judgment, representing the amount the DOJ said he personally received from the scheme.
“At a time when Americans were scared for their families and their futures, Hasan Seyhun saw an opportunity to turn a national crisis into his own personal payday,” Assistant Attorney General Colin M. McDonald of the DOJ’s National Fraud Enforcement Division said in a statement.
McDonald said the Fraud Division would continue pursuing individuals accused of COVID-era fraud.
U.S. Attorney Jerome F. Gorgon Jr. said investigators found that the alleged scheme went beyond submitting false claims for services that were not performed.
“Not only did Seyhun and his co-conspirators defraud the American public of hundreds of millions of dollars’ worth of fake services, but they were so confident in their scheme that they routinely submitted claims for payment before test kits were even delivered to the customer,” Gorgon said.
How the alleged COVID testing fraud worked
Fast Lab marketed COVID-19 tests online as “no cost” to customers during the pandemic. The company then allegedly used customers’ insurance details to seek reimbursement for testing-related services. The DOJ said the false claims included services involving antigen testing, saliva collection and PCR testing.
Seyhun also admitted to conspiring with previously charged defendants Cemhan “Jimmy” Biricik, Fast Lab’s CEO, and Dr. Martin Perlin, the company’s medical director. The government said the broader scheme resulted in more than $500 million in claims being submitted to government-backed health care programs.
The case involved a multi-agency investigation that included the FBI, the Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General, IRS Criminal Investigation, the Department of Labor Office of Inspector General, the U.S. Postal Inspection Service and Michigan authorities.
Jennifer Runyan, special agent in charge of the FBI Detroit Field Office, said a scheme of this scale could undermine public trust and divert health care funds from programs and people who need them.
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The OPM Office of Inspector General also said false claims involving medical testing services can place taxpayers at financial risk and undermine the Federal Employees Health Benefits Program.
DOJ expands COVID-era fraud enforcement
The Seyhun guilty plea comes as the DOJ continues its efforts to pursue fraud connected to federal programs established or expanded during the COVID-19 pandemic.
The DOJ said its National Fraud Enforcement Division was created on April 7 and is focused on investigating and prosecuting fraud against the American public. The department said the division’s work forms part of President Donald Trump’s Task Force to Eliminate Fraud, a broader government effort targeting fraud, waste and abuse involving federal benefit programs.
The DOJ said Seyhun’s case was prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Ryan A. Particka.
The department has not characterized the $500 million figure as money personally received by Seyhun. Instead, prosecutors said more than $500 million in claims were logged as part of the broader scheme, while at least $35 million in illicit payments resulted from the fraudulent billing activity and Seyhun personally received approximately $4.31 million, according to the plea-related allegations.
The guilty plea represents the latest development in the investigation into Fast Lab and its allegeed use of pandemic-era COVID-19 testing programs to generate fraudulent insurance claims.