Mercer County Man Pleads Guilty in COVID-19 Testing Kickback Scheme

Tauqir Khan admits to his role in a conspiracy to solicit kickbacks for COVID-19 test samples, as U.S. Attorney Philip R. Sellinger warns against illegal kickbacks in the healthcare system.

Morristown, NJ - A Mercer County man has pleaded guilty to his involvement in a COVID-19 testing kickback scheme, putting healthcare providers and the general public on alert. The case has significant implications for Morris County residents, emphasizing the need for vigilance in healthcare-related transactions amid the ongoing pandemic.

Tauqir Khan, a 65-year-old resident of Pennington, New Jersey, admitted to one count of conspiracy to violate the Anti-Kickback Statute in Newark federal court before U.S. District Judge Brian R. Martinotti. He was involved in a scheme to solicit kickbacks in exchange for referring COVID-19 test samples to Metpath Laboratories in Parsippany, New Jersey.

U.S. Attorney Philip R. Sellinger announced, “Clinical laboratories and healthcare professionals are on notice: paying kickbacks to steer tests to a lab may break the law.” He emphasized the commitment of his office to "preserve the integrity of medical decision-making."

FBI – Newark Special Agent in Charge James E. Dennehy added, “There were many fraudsters who saw the global pandemic as a get-rich-quick gold mine. Khan and his conspirators were no different, soliciting kickbacks and wrongfully billing healthcare programs.”

According to court documents and statements, Khan and his conspirators referred COVID-19 test samples to Metpath Laboratories, which then paid kickbacks for the referrals. The lab subsequently billed Medicare and other healthcare benefit programs for these tests.

The charge carries a maximum penalty of five years in prison and a fine of $250,000 or twice the gross profit or loss caused by the offense, whichever is greater. Khan is scheduled for sentencing on January 11, 2024.

U.S. Attorney Sellinger credited the FBI, under the direction of Special Agent in Charge James E. Dennehy, for their investigation that led to the guilty plea. The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the Health Care Fraud Unit in Newark.

It's crucial for Morris County residents to be aware of such fraudulent activities, especially as they navigate healthcare decisions during these challenging times. This case serves as a stark reminder that vigilance and integrity are essential in all healthcare dealings.