Two Sentenced in $522M Genetic Testing Fraud and Medicare Kickback Scheme

Two Georgia men have been sentenced to federal prison for their roles in a massive $522 million genetic testing fraud and kickback scheme that targeted Medicare, Medicaid, and private insurers. According to the Department of Justice, Reyad Salahaldeen received more than 12 years in prison after pleading guilty to conspiracy to commit healthcare fraud and wire fraud, while co-defendant Mohamad Mustafa was sentenced to three years for paying illegal healthcare kickbacks.

Federal prosecutors alleged that the defendants operated multiple laboratories and used a nationwide network of marketers to obtain DNA samples and insurance information from beneficiaries through telemarketing calls, health fairs, and door-to-door solicitation. Investigators said the scheme relied on illegal kickbacks paid to marketers and medical providers to obtain orders for medically unnecessary genetic tests that were never used in patient treatment. Authorities further alleged that falsified medical records and sham contracts were used to conceal the fraudulent conduct. The laboratories ultimately billed more than $522 million in false claims, with insurers paying approximately $84 million.

The case highlights the government’s continued crackdown on large-scale healthcare fraud and kickback schemes, particularly those involving telemarketing and medically unnecessary testing targeting elderly patients. It also underscores the critical role that whistleblowers and qui tam actions can play in helping investigators uncover complex fraud operations involving federal healthcare programs.