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Cape Medical Lab Allegedly Involved in Medicaid Kickback Scheme

Kathleen Franey-Lopes, 35, of Marstons Mills, was charged with one count of Medicaid Kickbacks, one count of Medicaid False Claims, and three counts of Private Health Insurance Kickbacks.

The following is from a press release: 

Dr. Richard Ng, 54, of Milton, the former director of a drug abuse clinic in Brighton between 2006 and 2008, was charged with 11 counts of Illegal Prescribing, nine counts of Medicaid False Claims, and seven counts of Medicaid Excess Charges, according to a statement from Attorney General Martha Coakley's office.

The clinic’s former office manager was also indicted for conducting an elaborate Medicaid kickback scheme worth more than $590,000. Franey Medical Lab in Hyannis was one of two labs involved in Medicaid kickback scheme.

Renee Andrews, 43, of Hudson, NH, was charged with four counts of Medicaid Kickbacks, two counts of Medicaid False Claims, and five counts of Private Health Insurance Kickbacks. As Ng’s former office manager, she allegedly offered and entered into Medicaid kickback arrangements with two laboratories including Franey Medical Lab, Inc. in Hyannis and East Side Clinical Laboratory in East Providence, RI.
 
In exchange for Ng’s significant urine drug screening business, the laboratories paid the salaries of some of Ng’s office staff, including the full-time salaries of Andrews’ daughter, nephew and boyfriend, who also worked as medical assistants and performed other administrative duties. The drug screens resulting from the kickbacks were worth more than $590,000 and were paid for by MassHealth, as well as Medicare and private insurances.
 
Franey Medical Lab was charged with one count of Medicaid Kickbacks, one count of Medicaid False Claims, and three counts of Private Health Insurance kickbacks.
 
Kathleen Franey-Lopes, 35, of Marstons Mills, was charged with one count of Medicaid Kickbacks, one count of Medicaid False Claims, and three counts of Private Health Insurance Kickbacks. Franey, the daughter of the lab’s owner, was the primary contact with Ng’s office  between March 2007 and March  2008.

The 48 indictments returned Thursday by a Suffolk Grand Jury against four defendants are the result of an industry-wide independent clinical laboratory investigation conducted by Attorney General Coakley’s Medicaid Fraud Division. The defendants will be summonsed for arraignment on April 4, 2013.    

This case is being prosecuted by Assistant Attorney Generals Toby Unger and Angela Neal, of Attorney General Coakley’s Medicaid Fraud Division, and Deputy Chief of the Medicaid Fraud Division Steven Hoffman.  The case was investigated by investigators Joseph Shea and Erica Schlain. This case was referred to the AG’s Office by MassHealth, who also assisted in the investigation.

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