Exceltox Laboratories, LLC, a California diagnostic laboratory, is paying a $357,584 settlement to resolve allegations of False Claims Act (FCA) violations. Exceltox allegedly submitted or caused to be submitted claims for genetic tests to Medicare without valid physician oversight.

In 2015, Exceltox engaged an independent contractor, Seth Rehfuss, who persuaded residents of low-income senior housing complexes in New Jersey to submit to genetic testing. No healthcare professional was involved despite Medicare rules requiring that a treating physician order and oversee such tests. Rehfuss pleaded guilty to conspiracy to commit healthcare fraud and was sentenced in 2019 to 50 months in prison.

The Exceltox settlement continues the U.S. Department of Justice’s recent focus on genetic testing fraud, as previously discussed here.