Former owner of medical testing lab sentenced to prison for kickback scheme

Richard Reid of Astoria, Ore., has been sentenced to two years in prison for five federal felonies related to illegal kickbacks involving a medical testing lab where he was vice president of sales and co-owner, the U.S. Justice Department said Jan. 10. 

Mr. Reid was involved in securing $3.7 million in kickbacks for Northwest Physicians Laboratory by moving urine tests to two labs that could bill the government for testing. The government paid $6.5 million between the two labs. 

The labs would pay NPLW for referring patients covered by Medicaid, Medicare or TRICare. Mr. Reid covered up the payments as marketing service fees, according to the DOJ. 

NPLW pleaded guilty to the fraud in 2021 and paid a fine of over $8.1 million. Its CEO Jae Lee was sentenced to two years in prison in May 2022. 

Mr. Reid was first convicted in March 2022. A federal judge denied Mr. Reid's motion in court Jan. 10 to postpone his sentence while he filed an appeal for his conviction.

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