A federal jury in the Southern District of Florida has convicted a Florida man who was the vice president of a testing laboratory and owned and operated a separate marketing company for his role in a fraud scheme that took advantage of patients who wanted COVID-19 tests during the pandemic and were instead given additional blood tests they did not want or need, for which Medicare was billed over $15 million.
According to court documents and evidence presented at trial, Joseph Rodriguez, 58, of Coral Springs, perpetrated a scheme that exploited elderly patients at residential country clubs in the West Palm Beach area who were desperate for COVID-19 nasal swab and blood antibody tests.
“The defendant took advantage of patients desperate for COVID-19 tests at the height of the pandemic to bill Medicare for unnecessary blood tests,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Such egregious conduct in the face of a global pandemic cannot stand and will be prosecuted. The Fraud Division remains committed to holding the perpetrators of such schemes accountable.”
When those patients signed up to receive just swab and antibody tests at drive-through testing events at their residence clubs organized by Rodriguez through his marketing company, Phoenix Health, they were, in addition to the COVID-19 tests they wanted, subjected to tens or even hundreds of unnecessary blood tests that they did not want or need, and that no doctor ordered as required. These tests, which ranged from hormone tests to heavy metal tests for arsenic, mercury, and cadmium, were then billed to Medicare as if they were medically necessary and ordered by a treating physician.
“This case highlights a troubling scheme that took advantage of vulnerable patients who sought COVID‑19 testing during a national public health crisis, only to be subjected to additional and unnecessary blood tests intended to increase profits,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “By placing personal gain above the well‑being of elderly individuals, the defendant violated their trust and threatened the integrity of our health care system. HHS‑OIG remains steadfast in its mission to protect public health and ensure that individuals who abuse federal health care programs and the people they serve are held fully accountable.”
