‘Cash-for-Patients,’ Illegal Laboratory Kickback Scheme Leads to Arrests

Two Florida men were arrested for their involvement in an alleged conspiracy to defraud the Medicare program through an illegal kickback scheme. According to a criminal complaint, the two men paid kickbacks in exchange for patient information that was ultimately used by clinical laboratories to defraud Medicare. The arrests were announced through a Department of Justice (DOJ) press release.

Scheme

The criminal complaint filed against the two men alleges that David Brock Lovelace and Dale B. DuBois, a managing member of Healthcare Marketing Florida LLC, paid cash to medical clinics in Miami-Dade County, Florida, in return for patient information and DNA samples. According to the DOJ, Lovelace and Dubois then provided the patient data and DNA samples to clinical laboratories in exchange for financial compensation. According to the complaint, in the past 14 months, Lovelace received $675,000 from one of the laboratory companies for the samples and data.

Previous Charges

One of the arrested men, Lovelace, had already been charged by indictment in May 2014 for health care fraud and money laundering offenses in a case that is currently pending in the Middle District of Florida. Following his arrest in the prior case, Lovelace was released on bond and ordered not to engage in any occupation related to the health care services industry or commit further crimes.