Delaware Lab and Owners Sued for False Claims Act Violations Over Unnecessary Diagnostic Testing

The U.S. Attorney’s Office for the District of Delaware has filed a civil complaint against Alpha Care Medical, LLC, its owner Nihar Gala, and laboratory director Bo Wang for allegedly defrauding Medicare, Medicaid, TRICARE, and the Federal Employees Health Benefits Program through false laboratory testing claims. The lawsuit, filed as part of the Department of Justice’s 2026 National Health Care Fraud Takedown, alleges the defendants violated the False Claims Act by submitting thousands of claims for laboratory diagnostic tests that lacked a valid medical purpose, were conducted in violation of clinical standards, and in many instances were never performed at all.

The complaint alleges that Alpha Care Medical and its leadership systematically billed federal healthcare programs for unnecessary and unreliable testing, prioritizing financial gain over patient care and taxpayer interests. The government further contends that the scheme compromised the integrity of diagnostic services by disregarding established laboratory standards designed to ensure accurate and reliable results. The civil claims are part of a broader nationwide enforcement action that has resulted in charges against 455 defendants across 56 federal districts, involving over $6.5 billion in false claims. This case reflects the government’s sustained commitment to protecting patients, public funds, and the integrity of the healthcare system. The investigation was conducted by the HHS Office of Inspector General, and the matter is being handled by the U.S. Attorney’s Office for the District of Delaware.