Illinois SMP Fraud Alert December 19, 2023

Schaumburg Lab Accused of Stealing Millions from Medicare in COVID-19 Test Kit Scheme

A felony criminal indictment unsealed in federal court earlier this month alleges a Schaumburg, IL laboratory owner was involved in a COVID-19 test kit scheme to defraud Medicare and hundreds of patients for tens of millions of dollars.

Federal prosecutors say Baqar Hussain Razv Syed and Luna Labs received $31,474,228.80 in taxpayer money from Medicare in three months. The company billed Medicare, records show, $69,832,800 in 349,164 claims for 2,793,312 COVID-19 test kits.

Syed and Luna Labs, prosecutors say, also billed Medicare for COVID-19 test kits using the Medicare number of 744 dead people.

"A detailed review was unable to conclusively identify a large and consistent stream of expenses tied to business activities typically expected with the operation of OTC (over the counter) COVID-19 testing, such as test kit purchases, shipping and packaging fees, and/or storage fees," the complaint states.

Most of the beneficiaries in this case never ordered the tests and sometimes never received them even though they were billed through Medicare for them. The Illinois SMP recommends reviewing your Medicare Summary Notices to see if you have any potential fraudulent charges over the past year.

The Illinois SMP has had multiple reports of COVID-19 Test Kit fraud from Luna Labs during 2023.

You can read the articles on this indictment here and here.

The Illinois SMP is also here to offer assistance if you feel you have been affected by any potential COVID-19 Test Kit Medicare fraud, please call the Illinois SMP at AgeOptions at (800)699-9043 or visit www.illinoissmp.org.

January 2024 SMP Workshops

January 11, 2024, at 11:00 am – SMP Bingo

Hanover Township (250 S Il Rte. 59, Bartlett, IL 60103)

January 18, 2024, at 11:00 am – SMP presentation with IL Attorney General’s Office

William Hawkins Multi-Purpose Service Center

(650 E. Phoenix Center Dr. Phoenix, IL 60426)

January 19, 2024, at 10:30 am – Senior Fair

Summit Park District (5700 S Archer Rd. Summit, IL 60501)

January 20, 2024, at 11:00 am – SMP Bingo

Homewood Public Library (17917 Dixie Hwy. Homewood, IL 60430)

January 25, 2024, at 10:00 am – SMP Bingo

Chicago Ridge Public Library (10400 S Oxford Ave. Chicago Ridge, IL 60415)

January 27, 2024, at 10:00 am – Cicero Spanish Vaccination Event

Alianza Social (5530 W 25th St. Cicero, IL)

January 30, 2024, at 11:30 am – SMP Bingo

Village of Markham (16313 Kedzie Pkwy. Markham, IL 60428)

January 31, 2024, at 11:00 am – SMP Bingo

South Chicago Heights Senior Center

(3140 Enterprise Park Ave. South Chicago Heights, IL 60411)

Have a wonderful week and holiday season!

We will be back in 2024!

Travis Trumitch

travis.trumitch@ageoptions.org

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This project was supported, in part by grant number 90MPPG0036, from the U.S. Administration for Community Living, Department of Health and Human Services, Washington, D.C. 20201. Grantees undertaking projects under government sponsorship are encouraged to express freely their findings and conclusions. Points of view or opinions do not, therefore, necessarily represent official Administration for Community Living policy.

The Illinois SMP at AgeOptions partners with agencies across the state to empower and assist Medicare beneficiaries, their families, and caregivers to prevent, detect, and report health care fraud, errors, and abuse through outreach, counseling, and education.

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