Lab owner must pay $140,000 for Medicaid fraud

FRANKFORT, Ky. (WTVQ) – An Indiana lab owner will spend five years on probation and repay almost $140,000 to Kentucky Medicaid after pleading guilty to Medicaid fraud charges.

According to Attorney General Daniel Cameron, 46-year-old Eric Daum was sentenced to five years on probation and restitution of $139,797 to Medicaid. He’d pleaded guilty on Jan. 22, 2021 and was sentenced recently by Franklin Circuit Court Judge Thomas Wingate.

Riverside Cytology Laboratory in Tell City, Ind., tested pap smear slides for Public Health Departments in various Kentucky counties. After Riverside’s lab director resigned on July 21, 2015, Daum, as the owner of the lab, continued to analyze pap smear tests illegally and billed and received payment from Medicaid from July 21, 2015, to August 14, 2016.

The Attorney General’s Office of Medicaid Fraud and Abuse Control and the Office of the Inspector General within the Cabinet for Health and Family Services investigated the case. Assistant Attorney General David R. Startsman prosecuted the case on behalf of the Commonwealth.

To report suspected Medicaid fraud, contact the Attorney General’s tip line at 1-877-ABUSE TIP (1-877-228-7384).

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