NEW YORK – The US Department of Justice announced Tuesday that a now defunct Texas clinical laboratory and its owner and founder have agreed to pay an additional $5.7 million to settle an outstanding False Claims Act judgment against them.

According to DOJ, BestCare Laboratory Services and its owner Karim Maghareh submitted false claims to Medicare by billing for travel allowances that did not reflect the mileage lab technicians actually traveled collecting specimens from nursing home clients.

The judgment against Maghareh and BestCare was originally entered in 2018. Since then the government has collected $789,652 from Maghareh. Under the newly announced agreement, Maghareh will pay an additional $5.7 million with the possibility of annual payments for an additional five years based on his future income. The settlement amount is based on DOJ's ability-to-pay policy.

The original lawsuit was filed in 2008 by Richard Drummond under the whistleblower provisions of the False Claims Act. Drummond will receive $1.3 million as part of the settlement.

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