OIG - Office of Inspector General

07/23/2026 | Press release | Distributed by Public on 07/24/2026 08:32

Dallas Laboratory, Owners, and Investors Pay $24M to Resolve COVID-19 Testing Fraud Allegations

Dallas Laboratory, Owners, and Investors Pay $24M to Resolve COVID-19 Testing Fraud Allegations

Magnolia Diagnostics, a clinical laboratory based in Dallas, Texas, and its owners, John Bains and Kelly Bains, have agreed to pay the United States $19.2 million to resolve allegations that they violated the False Claims Act by billing Medicare for medically unnecessary respiratory pathogen panel testing performed on seniors receiving COVID-19 tests.

More About This Action

Action Details

  • Date:July 23, 2026
  • Agency:U.S. Department of Justice and U.S. Attorney's Office, Northern District of Texas
  • Enforcement Types:
    • Criminal and Civil Actions
OIG - Office of Inspector General published this content on July 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 24, 2026 at 14:33 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]