LTD Holding LLC (Labtech Diagnostics)
Outcome
Labtech Diagnostics and its CEO Joseph Labash agreed to pay at least $6.8 million and pleaded guilty to five counts of offering and paying health care kickbacks to doctors in exchange for laboratory test referrals, in a combined civil settlement and criminal plea.
Details
Labtech Diagnostics — $6.8M Kickback Settlement and Criminal Plea (2015–2022)
Outcome: Labtech Diagnostics and its CEO Joseph Labash agreed to pay at least $6.8 million and pleaded guilty to five counts of offering and paying health care kickbacks to doctors in exchange for laboratory test referrals, in a combined civil settlement and criminal plea.
LTD Holding LLC, formerly known as Labtech Diagnostics LLC, operated a clinical laboratory in Anderson, South Carolina. Its founder and CEO, Joseph Labash, who had relocated to the United Arab Emirates, agreed to pay at least $6.8 million to the United States to resolve False Claims Act allegations involving illegal kickbacks to doctors.
In addition to the civil settlement, Labtech agreed to plead guilty to five counts of offering and paying health care kickbacks in violation of the Anti-Kickback Statute. The kickback payments induced physicians to refer laboratory tests to Labtech, resulting in false claims submitted to Medicare.
The combined civil and criminal resolution reflects the DOJ's increasing use of parallel proceedings to address laboratory kickback schemes.
Primary Source: DOJ: South Carolina Laboratory Pleads Guilty and Agrees to Pay At Least $6.8M to Settle Allegations of Kickbacks to Doctors
How Crucible Prevents This
Labtech paid doctors in exchange for referrals, a classic anti-kickback violation that persisted for years. Crucible's physician financial relationship tracking hooks would require documentation and review of all payments to referring providers, with automated alerts when payment patterns correlate with referral volumes.
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