A Florida man has admitted his involvement in a scheme that defrauded Medicare of over $4.8 million, according to an announcement by United States Attorney Alina Habba.
Charles P. Kasbee, Jr., 48, from Palm Beach Shores, Florida, pleaded guilty in Newark before U.S. District Judge Michael E. Farbiarz to charges of conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute.
Court documents and statements reveal that between February 2019 and September 2019, Kasbee and his associates submitted claims for unnecessary cancer genetic screening tests (CGX) obtained through bribes and kickbacks. Marketing call centers were used to gather personal and medical information from Medicare beneficiaries using deceptive telemarketing techniques. CGX testing kits were sent to these beneficiaries, who completed them and returned them to a laboratory that filed reimbursement claims with Medicare. Kasbee received more than $1,200 in kickbacks for each reimbursed test.
To hide the fraudulent activities, Kasbee entered into contracts with co-conspirators labeling kickback payments as “expenses” and created false invoices disguising their true nature. Payments were based solely on the number of reimbursed CGX tests.
The fraudulent scheme resulted in losses exceeding $4.8 million for Medicare.
Conspiracy to commit health care fraud carries a maximum penalty of 10 years imprisonment and a $250,000 fine. Conspiracy to violate the federal Anti-Kickback Statute carries up to five years imprisonment and a similar fine. Sentencing is set for November 19, 2025.
U.S. Attorney Habba acknowledged the contributions of several agencies: special agents from the FBI under Special Agent Stefanie Roddy’s direction; Health and Human Services-Office of Inspector General under Special Agent Naomi Gruchacz; Department of Defense’s Defense Criminal Investigative Service under Acting Special Agent Christopher Silvestro; Veterans Affairs Office of Inspector General under Special Agent Christopher F. Algieri.
Assistant U.S. Attorney Garrett J. Schuman from the Health Care Fraud and Opioid Enforcement Unit represents the government in this case.
Defense counsel is Joshua S. Lowther from Atlanta, GA.
