DOJ Alleges Diagnostic Lab Owner Defrauded Medicare of $100 Million in False Claims

The U.S. Attorney's Office for the Western District of Arkansas announced that a federal grand jury indicted Billy Joe Taylor, aged 42, with 16 counts of health care fraud and one count of engaging in a monetary transaction with criminally derived property, on November 3, 2021.

A conviction for each count carries a maximum prison term of 10 years.

Taylor, who owned Vitas Laboratories and Beach Tox and managed several diagnostic laboratories, used his position to allegedly defrauded Medicare of more than $100 million in false and fraudulent claims for urine drug testing, COVID-19 testing, and other clinical lab services between February 2017 and May 2021.

The alleged health care fraudulence is one of the highest amounts in Arkansas’ history.

“Medical providers have been the unsung heroes for the American public throughout the pandemic,” stated Christopher Wray, Director of the Federal Bureau of Investigations (FBI). “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens.”

The indictment alleges that Taylor obtained medical information and private personal information from Medicare beneficiaries, then utilized that information to submit claims to Medicare for diagnostic tests that were not ordered by medical providers and that the laboratories did not actually perform. Taylor allegedly spent the proceeds on a lavish lifestyle, including a Rolls Royce, real estate, jewelry, guitars, and clothing.

The FBI led the investigation, joined by the Department of Health and Human Services Office of Inspector General (HHS-OIG), and the Internal Revenue Service’s (IRS) Criminal Investigation.

“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” stated Gary L. Cantrell HHS-OIG Deputy Inspector General, “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”

Taylor was initially charged by criminal complaint on May 26. He is scheduled for arraignment on November 23.