US DOJ alleges Capstone executives caused $13.7m in medically unnecessary Medicare testing claims
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The US Department of Justice filed a False Claims Act complaint against former Capstone Diagnostics executives Jay Johnson and Austin Whiles and associated entities. The complaint alleges that Medicare paid approximately $13.7 million for medically unnecessary genetic and respiratory pathogen testing between 2019 and 2021.
Johnson also faces criminal health care and wire fraud charges. The DOJ alleges the scheme used church and senior-focused events to generate testing volume and involved kickbacks to conference organisers and independent marketers. The source reports no pleas, convictions or settlement.
