Florida Laboratory Vice President and Marketer Convicted of Medicare Fraud for COVID-19 Testing Scheme

Yesterday, a federal jury in the Southern District of Florida convicted a Florida man who was the Vice President of a testing laboratory and owned and operated a separate marketing company for his role in a fraud scheme that took advantage of patients who wanted COVID-19 tests during the pandemic and were instead given additional blood tests they did not want or need, for which Medicare was billed for over $15 million.

"The defendant took advantage of patients desperate for COVID-19 tests at the height of the pandemic to bill Medicare for unnecessary blood tests," said Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division. "Such egregious conduct in the face of a global pandemic cannot stand and will be prosecuted. The Fraud Division remains committed to holding the perpetrators of such schemes accountable."

"This case highlights a troubling scheme that took advantage of vulnerable patients who sought COVID-19 testing during a national public health crisis, only to be subjected to additional and unnecessary blood tests intended to increase profits," said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "By placing personal gain above the well-being of elderly individuals, the defendant violated their trust and threatened the integrity of our health care system. HHS-OIG remains steadfast in its mission to protect public health and ensure that individuals who abuse federal health care programs and the people they serve are held fully accountable."

"This guilty verdict holds Joseph Rodriguez accountable for his role in a scheme that exploited patients and fraudulently billed Medicare for millions of dollars," said FBI Special Agent in Charge Brett D. Skiles. "The jury's verdict reflects the strength of the evidence and underscores that those who seek to profit through fraudulent schemes will be held accountable. The FBI and our law enforcement partners remain committed to protecting patients, safeguarding taxpayer dollars, and pursuing those who defraud federal health care programs."

According to court documents and evidence presented at trial, Joseph Rodriguez, 58, of Coral Springs, perpetrated a scheme that exploited elderly patients at residence country clubs in the West Palm Beach area who were desperate for COVID-19 nasal swab and blood antibody tests. When those patients signed up to receive just swab and antibody tests at drive-through testing events at their residence clubs organized by Rodriguez through his marketing company, Phoenix Health, they were, in addition to the COVID-19 tests they wanted, subjected to tens or even hundreds of unnecessary blood tests that they did not want or need, and that no doctor ordered as required. These tests, which ranged from hormone tests to heavy metal tests for arsenic, mercury, and cadmium, were then billed to Medicare as if they were medically necessary and ordered by a treating physician.

Rodriguez marketed these drive-through COVID-19 events to the residence country clubs, set up the testing events, directed his staff to draw extra blood for the unnecessary tests, and caused a doctor's name to be fraudulently listed on the claims submitted to Medicare. As a result of these claims - for tests conducted at nine different clubs over approximately four months involving almost two thousand patients - Medicare was billed more than $15 million and paid over $500,000. Evidence at trial included patient complaints sent to Rodriguez, complaints from one of the doctors who supposedly ordered such tests wondering why Medicare had been billed thousands of dollars for blood tests in the doctor's name, and managers from the residence country clubs asking Rodriguez why these extra blood tests were being done on their club members when all they wanted were COVID-19 tests.

The jury convicted Rodriguez of conspiracy to commit health care fraud and six substantive counts of health care fraud. Rodriguez faces a maximum penalty of 10 years in prison for each count. A sentencing hearing will be scheduled by the Court at a later date in January 2027. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

FBI and HHS-OIG are investigated the case.

Assistant Deputy Chief James V. Hayes and Trial Attorney Claire Horrell of the Fraud Division's Health Care Fraud Section are prosecuting the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within Federal benefit programs.

The Department of Justice's Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unitLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link..