News and Press Releases

Clinical Laboratory Pleads Guilty to Health Care Fraud

FOR IMMEDIATE RELEASE
October 16, 2008

Las Vegas, Nev. – A clinical laboratory with multiple locations in Las Vegas pleaded guilty today in federal court to felony health care fraud charges for billing Medicare for millions of dollars of services that were never performed, announced Greg Brower, United States Attorney for the District of Nevada.

Alexander Stojanoff, Chief Executive Officer of Consolidated Laboratory Services, d/b/a, CLS, Inc. (CLS), entered guilty pleas on behalf of CLS to two counts of Health Care Fraud. According to the Guilty Plea Memorandum, between April 2002 and April 2005, CLS willfully engaged in a scheme to obtain money and property from the federal Medicare program by false representations in connection with the delivery of and payment for health care benefits, items and services. The Plea Memorandum states that CLS billed Medicare for traveling to a patient's home to collect specimens and for pathology consultations, none of which were performed, and that the loss to Medicare is greater than $7 million.

"Health care fraud impacts all Americans," said U.S. Attorney Brower. "Companies and individuals who intentionally defraud federal programs will be prosecuted and may face large fines and imprisonment."

CLS is scheduled to be sentenced on January 30, 2009, at 9:00 a.m. According to the Plea Memorandum, the company has agreed to pay a fine of approximately $5 million and agreed to the forfeiture of approximately $350,000. The corporation also faces a term of probation of one to five years.

The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Crane M. Pomerantz.

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