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3 arrested in $142M genetic testing fraud scheme using Houston company; $7.1M in assets seized

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AUSTIN – The Office of the Attorney General’s Medicaid Fraud Control Unit has arrested three people associated with the genetic testing company ApolloMDx for their alleged involvement in a major healthcare fraud scheme to fraudulently bill Medicare nearly $142 million.

Lily Tran Daniel, Kenneth Reynolds, and Lillian Thai offered illegal kickbacks in order to purchase both recipient information from marketers and orders for genetic testing from doctors, a news release said.

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MFCU and the FBI reportedly executed warrants seizing sports cars, a sailboat, and three properties, which they said were at a total value of $7.1 million and funded by the illegal operation.

In some cases, investigators said doctors made fraudulent diagnoses to make it appear as though recipients were eligible for testing when they were not. In addition, ApolloMDx altered dates of service on testing orders to make it appear that multiple DNA samples were collected on different dates to enable billing for multiple dates of service, MFCU said.

The case was investigated by Sergeant Joyce Combest, Investigative Auditor Wanda Guess, and Captain Rick McCollum from the Texas Medicaid Fraud Control Unit, as well as the Department of Health and Human Services’ Office of Inspector General and the FBI. The U.S. Department of Justice Health Care Strikeforce is prosecuting the case.

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Prairie View A&M University graduate with a master’s degree in Digital Media Studies from Sam Houston State. Delta woman. Proud aunt. Lover of the color purple. 💜

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