A New Jersey man was arrested Wednesday on charges of defrauding Medicare, which paid out more than $1 million to two unnamed clinical laboratories for unnecessary genetic tests on the elderly.
NEWARK--It was a $1 million scam aimed at convincing the elderly to get costly and unnecessary genetic testing.
Last July, Seth Rehfuss, 41, of Somerset, visited a low-income housing center in Cape May, organizing an ice cream social to talk about health issues. According to federal prosecutors, the presentation played on the fears that that genetic testing--painless and easily done with a simple swipe of a cotton swab--could identify those susceptible to heart attack, stroke, cancer and suicide.
The pitch was one he had made before many senior groups, said U.S. Attorney Paul Fishman, through the use of a New Jersey-based non-profit organization called "Good Samaritans of America" to gain access to community centers across the state.
On Wednesday, Rehfuss was arrested on charges of defrauding Medicare, which allegedly paid out more than $1 million to two unnamed clinical laboratories in Virginia and California used by the New Jersey man in exchange for tens of thousands of dollars in commissions for the questionable genetic tests.
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According to a criminal complaint filed in federal district court in Newark, Rehfuss claimed that The Good Samaritans of America was a "trusted non-profit" that assisted senior citizens in navigating federal benefit programs. On its webpage, the organization stated: "As Good Samaritans we are dedicated to increase the quality of life for seniors."
In reality, said prosecutors, the organization was a front to present information about genetic testing, luring people with advertisements for free ice cream to ensure attendance at the presentations.
The purpose of the genetic tests were reportedly to help identify potential side effects from medications. Hundreds submitted to the testing. Prosecutors said Rehfuss claimed that the genetic testing allowed for "personalized medicine."
Participants would have DNA swabs taken in the community rooms where the presentations took place, or in their apartments, without the involvement of any healthcare provider, or the determination that such testing was medically necessary or appropriate.
Rehfuss used advertisements on Craigslist to recruit doctors and physician assistants to get the tests authorized, through contractual relationships with The Good Samaritans of America. According to the criminal complaint, he paid off those providers with thousands of dollars per month to sign their names to requisition forms authorizing testing for patients they never examined.
Investigators said many of the test results were never sent to patients or their actual treating physicians.
While the scheme was launched in New Jersey, investigators said Rehfuss and others were working towards it into Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
Rehfuss, who is not yet represented by an attorney, could face up to 10 years in prison and a $250,000 fine if convicted.
Ted Sherman may be reached at tsherman@njadvancemedia.com. Follow him on Twitter @TedShermanSL. Find NJ.com on Facebook.
