A Florida resident has admitted his involvement in a scheme that defrauded Medicare of over $4.8 million, according to U.S. Attorney Alina Habba. Charles P. Kasbee, Jr., aged 48 and from Palm Beach Shores, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark to charges of conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute.
The fraudulent activities took place between February 2019 and September 2019, involving the submission of claims for unnecessary cancer genetic screening (CGX) tests obtained through bribes and kickbacks. Kasbee used marketing call centers that employed deceptive telemarketing methods to gather personal and medical information from Medicare beneficiaries. He then arranged for CGX testing kits to be sent out, which were completed by beneficiaries and returned to a testing laboratory that submitted reimbursement claims to Medicare.
Kasbee received more than $1,200 per CGX test resulting in Medicare reimbursement. To hide the scheme, he labeled kickback payments as “expenses” through contracts with co-conspirators and created false invoices disguising the true nature of these payments.
As a result of this scheme, Kasbee and his associates caused losses exceeding $4.8 million to Medicare.
Conspiracy to commit health care fraud can lead to a maximum penalty of 10 years in prison and a $250,000 fine while violating the federal Anti-Kickback Statute carries up to five years in prison and a similar fine. Sentencing is set for November 19, 2025.
U.S. Attorney Habba acknowledged special agents from various agencies including the FBI under Special Agent Stefanie Roddy; Department of Health and Human Services-Office of Inspector General led by Special Agent Naomi Gruchacz; Department of Defense Office of Inspector General under Acting Special Agent Christopher Silvestro; and Veterans Affairs Office of Inspector General headed by Special Agent Christopher F. Algieri for their roles in investigating this case.
Assistant U.S. Attorney Garrett J. Schuman represents the government in this matter.
Defense counsel: Joshua S. Lowther, Esq., Atlanta, GA
