United States Attorney Thomas T. Cullen with the Western District of Virginia reports the operators of American Toxicology Labs in Tennessee have plead guilty to health care fraud charges.
Officials say 59-year-old Michael Norman Dube and his wife, 40-year-old Regan Gran Dube both pleaded guilty in U.S. District Court in Abingdon on Wednesday.
Michael Dube pleaded guilty to two counts of health care fraud, one in the Western District of Virginia and one in the Eastern District of Kentucky. Regan Dube pleaded guilty to one count of health care fraud in the Western District of Virginia.
Regan Dube will be sentenced September 15, 2020 at 2:30 p.m., and Michael Dube will be sentenced September 17, 2020 at 2:30 p.m.
“The Dubes preyed upon a healthcare system that is supposed to help those in need. This is particularly egregious, given Michael Dube’s prior exclusion from federal health care programs,” First Assistant United States Attorney Daniel P. Bubar said today. “I am proud of the collaboration between our federal and state partners in Virginia, Kentucky and Tennessee, which produced this just result.”
“Michael Dube defrauded Medicaid programs in two states, taking public money that he was not entitled to receive and furthering his own interests,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Today’s guilty pleas are the product of close cooperation between two United States Attorney’s Offices and several law enforcement agencies and show our resolve in preventing fraud, waste, and abuse of the essential resources of government programs.”
“Healthcare fraud not only wastes hundreds of thousands of taxpayer dollars, but it also undermines an important system that provides thousands of Virginians with critical medical services,” said Attorney General Mark Herring. “I am incredibly proud of the work my nationally-renowned Medicaid Fraud Control Unit has done and we will continue to work with our federal partners to pursue these egregious cases of fraud and abuse.”
“Opioid addiction continues to be a public health emergency and it is important that treatment providers act with honesty and integrity in combatting the crisis. In cooperation with our federal and state law enforcement partners, we will continue to investigate and bring to justice those who defraud federal programs of resources to fight this epidemic,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office.
“The Medicare and Medicaid programs require providers to be truthful on all documents and claims submitted,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our Federal and State partners to hold providers accountable for fraudulent actions and safeguard the Medicare and Medicaid programs from fraud, waste and abuse.”
According to court documents, in March 2011, Michael Dube pleaded guilty in the Eastern District of Tennessee to one count of intentionally omitting information from reports as required under the Controlled Substances Act.
Due to this conviction, the Department of Health and Human Services [HHS] informed Dube in a letter dated June 29, 2012, that he was excluded from participating in any federal health care program.
Officials report in May 2013, Michael and Regan Dube established American Toxicology Labs [ATL] in Johnson City, Tennessee, with Regan Dube serving as the company’s registered agent, and using the couple’s home address as the principal office and mailing address.
ATL applied to participate in Medicare and Medicaid, with Regan Dube listed as the owner and Michael Dube’s name omitted.
Between May 1, 2014, and January 31, 2020, Medicare, Virginia Medicaid, Kentucky Medicaid and TennCare made payments to ATL that totaled approximately $8.5 million, according to authorities.
Officials say Michael Dube also received kickback payments from third-parties for referring individuals to those third-parties for services , payments that were deposited in Michael and Regan Dube’s personal checking account in a total amount of $441,646.
As a result of their guilty pleas, Michael and Regan Dube will pay a total of $9,015,046, plus interest, to be divided between special assessments, fines, restitution, and forfeiture. They will have to repay all of the money they received from Medicare and Medicaid programs.