In short
- Seyhun admitted orchestrating millions of dollars in fraudulent healthcare claims, resulting in at least $35M in illicit payments.
- He agreed to a forfeiture money judgment of $4,313,153, representing the amount he personally received from the scheme.
What happened
Hasan Seyhun, Chief Operating Officer of Fast Lab Technologies, pleaded guilty to conspiracy to commit healthcare fraud for submitting over $500 million in fake claims to government-backed healthcare programs. The scheme involved billing for COVID-19 tests and related services that were never provided, including false claims about medical observation and sample collection.
Seyhun conspired with Fast Lab’s CEO and Medical Director, orchestrating fraudulent claims that resulted in at least $35M in illicit payments. He agreed to a forfeiture money judgment of $4,313,153, reflecting his personal gain from the scheme. Multiple federal and state agencies contributed to the investigation and prosecution.
Not only did Seyhun and his co-conspirators defraud the American public of hundreds of millions of dollars’ worth of fake services, but they were so confident in their scheme that they routinely submitted claims for payment before test kits were even delivered to the customer.
In numbers
- $500 million total fake claims submitted
- $35M illicit payments from fraudulent claims
- $4,313,153 forfeiture money judgment for Seyhun
What compliance teams should check
- Review claims submitted by Fast Lab Technologies, LLC for COVID-19 testing during the pandemic for signs of fraud.
- Cross-check insurance billing for antigen and PCR tests claimed to be observed or collected by medical professionals against actual service records.
- Monitor for similar typologies involving 'no cost' COVID-19 tests ordered online and false billing to government-backed healthcare programs.
Why it matters
This case highlights the vulnerability of government-backed healthcare programs to large-scale fraud during public health emergencies. Compliance officers must be vigilant for schemes involving false claims for medical testing, especially when services are offered as 'no cost' and billed to insurance. The involvement of multiple agencies and the scale of illicit payments underscore the importance of robust controls, interagency cooperation, and thorough review of billing practices to prevent and detect similar frauds in the future.
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