Additional Information for Spectrum Diagnostic Labs, LLC

The United States Department of Justice v. Metric Lab Services LLC and Metric Management Services LLC and Spectrum Diagnostic Labs LLC and Sherman Kennerson and Jeffrey Madison

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency.  If the matter is being appealed, it will be noted below.  

On July 22, 2022, the United States Department of Justice settled allegations against Spectrum Diagnostic Labs, LLC, and two of their owners and operators, Sherman Kennerson and Jeffrey Madison caused the submission of false claims to Medicare by paying kickbacks in return for genetic testing samples.

The United States alleged that Metric, Spectrum, Kennerson, and Madison participated in a genetic testing fraud scheme with various marketers. These marketers solicited genetic testing samples from Medicare beneficiaries. The marketers arranged to have a physician fraudulently attest that the genetic testing was medically necessary, and Metric and Spectrum would process the tests, receive reimbursement from Medicare and pay a portion of that reimbursement to the marketers.

In an attempt to conceal the nature of the kickback arrangement, Metric and Spectrum entered into sham agreements with marketers to provide various consulting, marketing and other services at an hourly rate. In reality, however, Metric and Spectrum paid the marketers a percentage of revenue, including Medicare reimbursement, in return for the samples. The marketers then generated sham invoices for hourly services that matched the agreed-upon kickback amount.

For more details go to https://www.justice.gov/opa/pr/metric-lab-services-metric-management-services-llc-spectrum-diagnostic-labs-llc-and-owners.