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Virginia diagnostic testing lab agrees to pay $1.4M to resolve false claims act allegations

NEW JERSEY – A Virginia diagnostic laboratory will pay $1.4 million to resolve allegations that it violated the False Claims Act by submitting or causing to be submitted claims for genetic tests to Medicare without valid physician oversight, acting U.S. Attorney Rachael Honig announced Friday.

According to the contentions of the United States contained in the settlement agreement, from July 2014 to September 2015, Genetworx Laboratories utilized the services of Seth Rehfuss, of Somerset, New Jersey as a sales representative who persuaded groups of senior citizens in senior housing complexes to submit to genetic testing, despite applicable Medicare rules requiring proper orders from a treating physician for such tests.

Genetworx, in turn, submitted claims for payment to Medicare for Rehfuss’s genetic tests performed without valid physician oversight, according to the settlement.

Rehfuss previously pleaded guilty in Trenton federal court to a superseding information charging him with conspiracy to commit health care fraud and was sentenced in May 2019 to 50 months in prison, Honig said.

Jay Edwards

Born and raised in Northwest NJ, Jay has a degree in Communications and has had a life-long interest in local radio and various styles of music. Jay has held numerous jobs over the years such as stunt car driver, bartender, voice-over artist, traffic reporter (award winning), NY Yankee maintenance crewmember and peanut farm worker. His hobbies include mountain climbing, snowmobiling, cooking, performing stand-up comedy and he is an avid squirrel watcher. Jay has been a guest on America’s Morning Headquarters,program on The Weather Channel, and was interviewed by Sam Champion.

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