throbber
ESTTA Tracking number:
`
`Filing date:
`
`ESTTA1346186
`03/14/2024
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Petition for Cancellation
`
`Notice is hereby given that the following party has filed a petition to cancel the registration indicated below.
`
`Petitioner information
`
`Name
`
`Entity
`
`Address
`
`Attorney informa-
`tion
`
`GMD12, LLC
`
`Limited Liability Company
`
`2055 WOOD ST.
`SUITE 102
`SARASOTA, FL 34237
`UNITED STATES
`
`Incorporated or
`registered in
`
`FL
`
`JEFFREY FABIAN
`SHUMAKER, LOOP & KENDRICK, LLP
`101 E. KENNEDY BLVD., SUITE 2800
`TAMPA, FL 33602
`UNITED STATES
`Primary email: jfabian@shumaker.com
`Secondary email(s): ldyer@shumaker.com, sregala@shumaker.com
`8132272243
`
`Docket no.
`
`Registration subject to cancellation
`
`Registration no.
`
`5935648
`
`Registration date
`
`12/17/2019
`
`Register
`
`Registrant
`
`Principal
`
`LabSolutions LLC
`1451 NORTHSIDE DR NW
`ATLANTA, GA 30318
`UNITED STATES
`
`Goods/services subject to cancellation
`
`Class 044. First Use: Oct 2, 2018 First Use In Commerce: Oct 2, 2018
`All goods and services in the class are subject to cancellation, namely: Genetic testing for medical
`purposes; Medical testing of urine, blood, hair follicles and breath
`
`Grounds for cancellation
`
`Mark never used in commerce
`
`Abandonment
`
`Trademark Act Section 14(6)
`
`Trademark Act Section 14(3)
`
`Attachments
`
`Petition for Cancellation .pdf(351900 bytes )
`Ex 1 - DoJ Article.pdf(902007 bytes )
`Ex 2 - Criminal Judgment.pdf(338428 bytes )
`
`

`

`Ex 3 - Indictment.pdf(1164881 bytes )
`Ex 3 - Indictment.pdf(1164881 bytes )
`Ex 4 - superseding indictment.pdf(1198503 bytes)
`Ex 4 - superseding indictment.pdf(1198503 bytes )
`Ex 5 - Jury Verdict.pdf(193742 bytes)
`Ex 5 - Jury Verdict.pdf(193742 bytes )
`Ex 6 - LabSolutions GA Secretary of State.pdf(156796 bytes)
`Ex 6 - LabSolutions GA Secretary of State.pdf(156796 bytes )
`Ex 7 - Ident Word Mark.pdf(2224849 bytes )
`Ex 7 - Ident Word Mark.pdf(2224849 bytes )
`Ex 8 - Identifyn Word Mark.pdf(2715384 bytes)
`Ex 8 - Identifyn Word Mark.pdf(2715384 bytes )
`Ex 9 - Identifyn Design Mark 97939947.pdf(4381428 bytes )
`Ex 9 - Identifyn Design Mark 97939947.pdf(4381428 bytes )
`Ex 10 - Identify Registration.pdf(45171 bytes )
`Ex 10 - Identify Registration.pdf(45171 bytes )
`Ex 11 - Identify File History.pdf(317044 bytes)
`Ex 11 - Identify File History.pdf(317044 bytes )
`Ex 12 - Dec of B. Bennett.pdf(63680 bytes )
`Ex 12 - Dec of B. Bennett.pdf(63680 bytes )
`Ex 13 - Order of Default.pdf(196118 bytes )
`Ex 13 - Order of Default.pdf(196118 bytes )
`Ex 14 - Order denying motion to release seized funds.pdf(609546 bytes)
`Ex 14 - Order denying motion to release seized funds.pdf(609546 bytes )
`
`03/14/2024
`
`/Jeffrey Fabian/
`/Jeffrey Fabian/
`Jefirey Fabian
`Jeffrey Fabian
`03/14/2024
`
`Signature
`
`Name
`
`Date
`
`

`

`
`GMD12, LLC
`
`
`
`v.
`
`LABSOLUTIONS, LLC
`
`
`
`
`
`
`
`
`Petitioner,
`
`Respondent.
`
`
`
`
`Cancellation No.
`
`
`
`
`
`
`
`
`
`
`
`
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`TRADEMARK TRIAL AND APPEAL BOARD
`
`
`In the Matter of Registration No. 5,935,648
`For the mark: IDENTIFY
`Registered: Dec. 17, 2019
`
`
`
`PETITION FOR CANCELLATION
`
`GMD12, LLC (“Petitioner”), will be damaged by the continued registration of U.S.
`
`Trademark Registration No. 5,935,648 for the mark IDENTIFY for “genetic testing for
`
`medical purposes,” which is owned by the defunct company, Labsolutions, LLC
`
`(“Respondent”) whose owner, Minal Patel, was sentenced to twenty-seven (27) years in
`
`federal prison for his role in a massive $463 million scheme to defraud Medicare. See
`
`Exhibit 1, U.S. Department of Justice, Office of Public Affairs, Lab Owner Convicted in
`
`$463 Million Genetic Testing Scheme to Defraud Medicare; see also Exhibit 2,
`
`Judgement in a Criminal Case (sentencing Patel), United States v. Patel, 19-CR-80181,
`
`ECF No. 544 (Aug. 21, 2023).
`
`Patel was indicted on September 25, 2019 for being a key player in a scheme that
`
`obtained $463 million Medicare reimbursements for performing genetic tests that
`
`patients did not need and that were not actually covered by Medicare. See Exhibit 3,
`
`United States v. Patel, 19-CR-80181, ECF No. 1, Indictment (Sept. 25, 2019). Patel, as the
`
`
`
`

`

`
`
`owner of Respondent LabSolutions, directed Respondent to pay kickbacks to patient
`
`recruiters in exchange for referrals for genetic testing. See Exhibit 4, Superseding
`
`Indictment ¶¶ 27-28, Count 1, ¶ 5, Counts 2-4, ¶ 3.
`
`The kickbacks paid by Respondent were disguised through the use of sham
`
`contracts and other documents that gave the false appearance recruiters were performing
`
`legitimate marketing. Id. ¶ 6. In reality, the recruiters preyed upon Medicare beneficiaries
`
`with bogus marketing campaigns designed to induce patients to undergo genetic tests that
`
`they did qualify for. Id. at ¶¶ 5-7. The recruiters then paid kickbacks to telemedicine
`
`companies in exchange for fraudulent physician orders authorizing the genetic testing.
`
`Id. ¶ 8.
`
`On December 14, 2022, a jury in south Florida returned a verdict convicting Patel
`
`of ten counts of health care fraud. See Exhibit 5, Jury Verdict. Patel was later sentenced
`
`to 324 months (27 years) in prison. See Exhibit 2, Judgement. As part of the fallout,
`
`LabSolutions is subject to a judgment of over $600 million. United States of America ex
`
`rel. Grant & Ferguson, Case No. 18-CV-2341, ECF No. 88 (D.S.C. Apr. 21, 2023). In light
`
`of Patel’s conviction and the massive burden to his company, Petitioner does not believe
`
`that LabSolutions is an ongoing business concern.
`
`Petitioner conducted a reasonable investigation, as described below, and
`
`concluded that Respondent is no longer in business and no longer using the IDENTIFY
`
`Registration. Petitioner also does not believe that the IDENTIFY mark was ever used in
`
`commerce as defined under the Lanham Act, or if the mark was used, such use was
`
`unlawful in light of the fraud scheme for which Patel was convicted. Accordingly,
`
`Petitioner hereby petitions for cancellation of the Registration pursuant to 15 U.S.C. §§
`
`1051(a), 1064(3), (6), and 1127 on the grounds of nonuse and abandonment.
`
`2
`
`

`

`
`
`THE PARTIES
`
`1.
`
`GMD12, LLC is a Florida limited liability company with a principal place of
`
`business at 2055 Wood St. Suite 102, Sarasota, FL 34237.
`
`2.
`
`Labsolutions, LLC is a Georgia limited liability company having an address
`
`of 1451 Northside Dr. NW Atlanta, GA 30318. See Exhibit 6, Georgia Corporations
`
`Division Printout.
`
`3.
`
`4.
`
`Respondent’s Registered Agent is listed as Minal Patel.
`
`PETITIONER’S IDENTIFYN MARKS
`
`Petitioner is the owner of U.S. Trademark Application Serial Nos.
`
`97/939807 and 98/185398 for the IDENTIFYN word mark, and U.S. Trademark
`
`Application Serial No. 97/939,947 for the IDENTIFYN design mark, as shown below
`
`(collectively the “IDENTIFYN Marks” or the “Applications”).
`
`5.
`
`Application Serial Nos. 97/939807 and 97/939,947 both seek registration
`
`
`
`in:
`
`International Class 1 for “Reagents and kits comprised of reagents
`for life science research use, biological specimen collection, drug
`development, diagnostic services, and predictive medicine to predict
`treatment efficacy and patient outcomes, and biological product
`development; reagents for clinical or medical laboratory use.”
`
`-- and --
`
`International Class 42 for “Microscopy imaging services in the fields
`of microbiology, life sciences research, drug development, diagnostic
`services, predictive medicine to predict treatment efficacy and
`patient outcomes, and biological product development, namely,
`imaging services for use in the study and analysis of biological tissue
`samples, biopsy samples, tissue cultures, cell cultures, antibodies,
`antigens, and internal cellular components.”
`
`3
`
`

`

`
`
`
`
`
`Application Serial No. 98/185398 seeks registration in:
`
`6.
`
`International Class 42 for “Providing reagent sample testing and
`diagnostic services for others for scientific research purposes;
`Research and development services in the field of antibodies.”
`
`-- and --
`
`International Class 44 for “Antibody testing for medical diagnostic
`or treatment purposes; Medical diagnostic testing, monitoring and
`reporting services; Medical imaging service.”
`
`7.
`
`Petitioner filed the Applications as intent to use applications under Section
`
`1(b) of the Lanham Act, 15 U.S.C. § 1051(b).
`
`8.
`
`The Applications are pending, and copies of the file histories are attached
`
`hereto as Exhibits 7-9.
`
`RESPONDENT’S REGISTRATION
`
`9.
`
`Respondent is the record owner of U.S. Trademark Registration No.
`
`5,935,648 for IDENTIFY in connection with “genetic testing for medical purposes;
`
`medical testing of urine, blood, hair follicles and breath” in international class 44
`
`(“Registration”). See Exhibit 10, Registration Certificate; Exhibit 11, File History.
`
`THE OFFICE ACTIONS
`
`10.
`
`In three office actions dated February 15, 2024 and February 16, 2024
`
`(“Office Actions”), the USPTO cited Respondent’s Registration against the Applications
`
`as part of a § 2(d) likelihood of confusion rejection of Petitioner’s Applications. See
`
`Exhibits 7-9 (including copies of the Office Actions).
`
`11.
`
`The rejection of Petitioner’s Applications based on the Registration
`
`constitutes interference with Petitioner’s Applications and causes harm to Petitioner.
`
`Because this harm to Petitioner is within the zone of interests protected by the Lanham
`
`4
`
`

`

`
`
`Act and is proximately caused by the Registration, Petitioner is entitled to bring this
`
`petition for cancellation.
`
`GROUNDS FOR CANCELLATION AND RESPONDENT’S
`NON-USE OF THE IDENTIFY REGISTRATION
`
`12. On February 19, 2019, Respondent filed the application for IDENTIFY on
`
`
`
`the basis of use in commerce under Section 1(a) of the Lanham Act, 15 U.S.C. 1051(a).
`
`Respondent filed the trademark application pro se and was not represented by counsel
`
`before the USPTO.
`
`13.
`
`In its application, Respondent alleged and represented to the USPTO that it
`
`was actively using the IDENTIFY mark in U.S. commerce in connection with the
`
`described goods and/or services and that Respondent commenced use of the mark as
`
`early as October 1, 2018 (“Representation”).
`
`14.
`
`In support, Respondent submitted a website advertisement as its specimen
`
`evidencing alleged use of the mark. On September 11, 2019, a Notice of Publication was
`
`issued, and the mark ultimately registered.
`
`15.
`
`On information and belief, the Representation was false at the time
`
`Respondent made it because Respondent was not actually using the mark in commerce
`
`in satisfaction of Section 1(a) of the Lanham Act.
`
`16.
`
`The specimen of use that Respondent filed was a webpage displaying the
`
`IDENTIFY mark on it. Petitioner attempted to locate the webpage online and was unable
`
`to find it.
`
`17.
`
`Respondent’s website, labsolutions.com (“Website”), currently does not use
`
`the IDENTIFY mark. Respondent’s Website does not offer any goods and/or services in
`
`connection with the Registration.
`
`5
`
`

`

`
`
`18.
`
`Petitioner’s principal, Brian Bennett, Ph.D. (“Dr. Bennett”), reviewed
`
`Respondent’s Website. Based on Dr. Bennett’s review, his opinion is that Respondent’s
`
`Website appears to be a template with no real data or connections. Additionally, the
`
`Website has not been active since at least 2022. Further, the Website is a PHP website,
`
`meaning it is a server-side scripting language embedded in HTML. As a PHP, the Website
`
`requires updates, none of which have been made since at least 2022.See Exhibit 12,
`
`Declaration of Brian T. Bennett, Ph.D. ¶¶ 1-5 (“Bennett Decl.”). The lack of activity and
`
`updates likely corresponds Respondent’s cessation of business due to the events stated
`
`herein.
`
`19. Dr. Bennett called the phone number listed on Respondent’s Website and
`
`found that the phone number was out of service. Id. ¶ 6.
`
`20. Dr. Bennett also emailed Respondent at the email address listed on
`
`Respondent’s website, info@labsolutions.com. Dr. Bennett received no response from
`
`any representative or Respondent. Id. ¶ 7.
`
`21. Dr. Bennett also searched for the mailing address listed on Respondent’s
`
`website: 1451 Northside Dr. NW Atlanta, GA 30318. Dr. Bennett found contact
`
`information for a realtor associated with the address. Dr. Bennett contacted the realtor
`
`and was notified that the building located at that address is currently unoccupied, and the
`
`building is listed for sale or lease. Id. ¶ 8.
`
`22. A search of court records shows that on or about April 23, 2023, a default
`
`judgment was entered against Respondent in the United States District Court for the
`
`District of South Carolina in the amount of $616,431,296.00. See Exhibit 13, Order
`
`of Judgment Against LabSolutions and Minal Patel. Respondent did not appear to defend
`
`that action and is jointly and severally liable for a judgment of over $600 million. United
`
`6
`
`

`

`
`
`States of America ex rel. Grant & Ferguson, Case No. 18-CV-2341 (D.S.C. Apr. 21, 2023).
`
`23. On December 14, 2022, Patel was found guilty of 10 counts in the United
`
`States District Court for the Southern District of Florida for his role in a scheme to defraud
`
`Medicare by submitting over $463 million in unnecessary tests performed by
`
`Respondent. See Exhibit 1, Department of Justice Article; Exhibit 2, Judgment in a
`
`Criminal Case; Exhibit 4, Superseding Indictment; Exhibit 5, Jury Verdict.
`
`24.
`
`Patel caused Respondent to seek out patients using an illegal kickback
`
`scheme where Respondent paid recruiters in exchange for referrals for genetic testing.
`
`See Exhibit 4, Superseding Indictment ¶¶ 27-28, Count 1, ¶ 5, Counts 2-4, ¶ 3. Respondent
`
`attempted to disguise and conceal the kickbacks through the use of sham contracts and
`
`other documents.
`
`25.
`
`The recruiters then paid kickbacks to telemedicine companies in exchange
`
`for fraudulent physician orders that authorized genetic testing even though the physicians
`
`were not the patient’s treating physician and even though the patients did not need the
`
`testing. Id. at ¶¶ 5-7.
`
`26. Respondent obtained payment from Medicare for the genetic tests even
`
`though the testing was not actually covered by Medicare. See Exhibit 3, Indictment.
`
`27. On August 21, 2023 the United States District Court for the Southern
`
`District of Florida entered judgment against Patel for healthcare fraud and sentenced him
`
`to 324 months of imprisonment. See Exhibit 2, Judgment in a Criminal Case.
`
`28. On information and belief, Patel is currently serving his sentence at the
`
`Federal Correction Institution in Jesup, Georgia. Mr. Patel’s address at the prison is:
`
`2600 Highway 301 South, Jesup, GA 31599, as determined from the Federal Bureau of
`
`7
`
`

`

`
`
`Prisons Find an inmate website: https://www.bop.gov/inmateloc/ and the Webpage for
`
`the Jesup prison location: https://www.bop.gov/locations/institutions/jes/.
`
`29. Respondent’s Registration is directed to “Genetic testing for medical
`
`purposes.” See Exhibit 11. On information and belief, the IDENTIFY mark was used as
`
`part of the above-described scheme for which Patel was convicted. Accordingly,
`
`Respondent’s use of the IDENTIFY mark, if any, was unlawful.
`
`30. As part of the criminal investigation into Patel’s activities, his bank accounts
`
`were seized by the government. Patel sought return of the seized funds and claimed that
`
`the seizure would result in Respondent having to terminate “120 salaried employees and
`
`scores of independent contractors” and would preclude Respondent from performing
`
`“laboratory analysis for hundreds and perhaps thousands of blood and urine samples
`
`submitted by [doctors].” See Exhibit 14, Order Denying Motion for Return of Seized
`
`Funds. Patel’s request was denied by the court. Patel’s representations concerning the
`
`effects of denying return of the seized funds indicate that the seizure itself may have put
`
`Respondent out of business.
`
`31.
`
`Respondent has abandoned several applications with the USPTO for failure
`
`to respond to an office action. See Serial No. 88256678 (BLOOD PATHOLOGY and
`
`design), Serial No. 88256693 (design), Serial No. 88252048 (RESPONSE), Serial No.
`
`88256680 (CLINICAL CHEMISTRY and design), Serial No. 88252028 (DISCOVER),
`
`Serial No. 88252032 (LABSOLUTIONS), Serial No. 88252042 (LABSOLUTIONS
`
`DEDICATED TO HELPING PHYSICIANS PROVIDE SUPERIOR HEALTHCARE
`
`LABSOLUTIONS.COM and design), Serial No. 88252046 (LABSOLUTIONS PREDICT),
`
`and Serial No. 88252050 (LABSOLUTIONS REVEAL).
`
`8
`
`

`

`
`
`32.
`
`The failure to respond to each application’s office action aligns with the time
`
`period in which Respondent and Patel were being investigated and ultimately found guilty
`
`of fraud against the Federal Government. The failure to respond to each application’s
`
`office action also likely reflects Respondent’s cessation of business due to the previously
`
`stated events.
`
`33. On information and belief, Respondent is no longer an operating business.
`
`34.
`
`Even if Respondent did in fact properly and sufficiently use the IDENTIFY
`
`mark in U.S. commerce at some point, Respondent has discontinued use of the IDENTIFY
`
`mark in connection with the goods and/or services identified in the Registration.
`
`COUNT I – VOID AB INITIO
`
`35.
`
`Petitioner realleges the allegation set forth above,
`
`including the
`
`introduction and numbered paragraphs 1-34.
`
`36.
`
`Trademark Act Section 1(a), 15 U.S.C. § 1051(a), requires that an applicant
`
`for a used-based trademark application make a verified statement that the applied-for
`
`mark is in use in commerce for the covered goods and/or services as of the application’s
`
`filing date.
`
`37. On February 19, 20219, Respondent filed a trademark application for
`
`IDENTIFY under Section 1(a) of the Lanham Act, 15 U.S.C. 1051(a) alleging a date of first
`
`use as early as October 2, 2018. The application included a specimen of use in support of
`
`Respondent’s application for the Registration.
`
`38. Upon information and belief, Respondent was not using the IDENTIFY
`
`mark in commerce on or in connection with some or all of Respondent’s services as of the
`
`October 1, 2018 alleged first use date asserted in the application, as required under
`
`Trademark Act Sections 1(a) and 45, 15 U.S.C. §§ 1051(a) and 1127.
`
`9
`
`

`

`
`
`39. On information and belief, Respondent’s mark was never in proper and
`
`sufficient use in U.S. commerce and Respondent knew it was not in proper use in U.S.
`
`commerce when the application was filed. The only reasonable inference from the
`
`foregoing is that Respondent made the Representation to mislead the USPTO and to
`
`cause the USPTO to issue Respondent’s Registration.
`
`40.
`
`The false Representation was material because, but for the false
`
`Representation, the USPTO would not have granted the Registration. However, in
`
`reliance on the false Representation, the USPTO issued the Registration.
`
`41.
`
`Petitioner has been and will continue to be harmed by the issuance of the
`
`Registration because it is preventing Petitioner from obtaining registration for its
`
`IDENTIFYN mark.
`
`42.
`
`The Registration is thus void ab initio and must therefore be cancelled
`
`under 15 U.S.C. § 1051(a).
`
`COUNT II – ABANDONMENT
`
`43.
`
`Petitioner realleges the allegation set forth above,
`
`including the
`
`introduction and numbered paragraphs 1-34.
`
`44. On information and belief, Respondent has discontinued use of the
`
`IDENTIFY mark in U.S. commerce in connection with all of the Respondent’s services.
`
`45. On information and belief, Respondent has discontinued use of the
`
`IDENTIFY mark in U.S. commerce for a period exceeding three (3) years.
`
`46. Upon further information and belief, Respondent intends not to resume use
`
`of the mark in connection with these goods and/or services in U.S. commerce.
`
`10
`
`

`

`
`
`47.
`
`Accordingly, Respondent has abandoned the IDENTIFY mark
`
`in
`
`connection with these goods and/or services, and the Registration is subject to
`
`cancellation pursuant to 15 U.S.C. § 1064(3).
`
`48. Based on the foregoing, Respondent has abandoned the Registration, which
`
`is grounds for cancellation of the Registration in its entirety.
`
`COUNT III – UNLAWFUL USE
`
`49.
`
`Petitioner realleges the allegation set forth above,
`
`including the
`
`introduction and numbered paragraphs 1-34.
`
`50. On information and believe, Respondent used the IDENTIFY mark as part
`
`of the scheme to defraud Medicare alleged herein.
`
`51.
`
`A registration is subject to cancellation if the registrant’s use is not lawful
`
`use in commerce under federal law. See Trademark Trial and Appeal Board Manual of
`
`Procedure (“TBMP”) § 309.03(c)(1)(27).
`
`52. Here, Respondent’s use of the IDENTIFY mark was in violation of 18 U.S.C.
`
`§§ 1349 (Conspiracy to commit health care fraud and wire fraud), 1347 (Health Care
`
`Fraud), 371 (Conspiracy to defraud the United States), 1956(h) (Conspiracy to commit
`
`money laundering), and 42 U.S.C. § 1320a-7b(b)(2)(A) (Payment of kickbacks in
`
`connection with a Federal health care program). See Exhibit 2, Judgment in a Criminal
`
`Case; Exhibit 4, Superseding Indictment; Exhibit 5, Jury Verdict.
`
`53.
`
`Based on the foregoing, Respondent’s use of the mark was unlawful under
`
`federal law, which is grounds for cancellation of the Registration in its entirety.
`
`PRAYER FOR RELIEF
`
`11
`
`

`

`
`
`WHEREFORE, Petitioner believes that it is being damaged, and will continue to
`
`be damaged, by the continued registration of Respondent’s IDENTIFY mark as reflected
`
`in the Registration and respectfully requests that the Registration be cancelled pursuant
`
`to 15 U.S.C. §§ 1051(a), 1064(3), and 1127. This Petition for Cancellation is filed according
`
`to the rules governing electronic submissions to the Trademark Trial and Appeal Board,
`
`including payment of the requisite fee.
`
`Respectfully submitted,
`
`SHUMAKER, LOOP & KENDRICK, LLP
`
`/s/Jeff Fabian___________
`Jeff Fabian
`Florida Bar No. 85868
`Email: jfabian@shumaker.com
`Samantha Regala
`sregala@shumaker.com
`Florida Bar No. 1032553
`101 E. Kenney Blvd.
`Suite 2800
`Tampa, FL 33602
`Ph: (813) 229-7600
`Fax: (941) 366-3999
`
`Attorney for Petitioner
`
`
`
`
`
`
`
`DATED: March 14, 2024
`
`
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`12
`
`

`

`
`
`PRESS RELEASE
`
`Lab OwnerConvicted in $463 Million
`Genetic Testing Schemeto Defraud
`Medicare
`
`
`
`Wednesday, December 14, 2022
`
`For Immediate Release
`
`Office of Public Affairs
`
`A federal jury in the Southern District of Florida convicted a Georgia man todayfor his role in a
`scheme to defraud Medicare by submitting over $463 million in genetic and other laboratory
`tests that patients did not need and that were procured through the payment of kickbacks.
`
`According to court documents and evidence presentedat trial, Minal Patel, 44, of Atlanta,
`owned LabSolutions LLC (LabSolutions), a lab enrolled with Medicare that performed
`sophisticated genetic tests. Patel conspired with patient brokers, telemedicine companies, and
`call centers to target Medicare beneficiaries with telemarketing calls falsely stating that
`Medicare covered expensive cancer genetic tests. After the Medicare beneficiaries agreed to
`take a test, Patel paid kickbacks and bribes to patient brokers to obtain signed doctors’ orders
`authorizing the tests from telemedicine companies. To conceal the kickbacks, Patel required
`patient brokers to sign contracts that falsely stated that they were performing legitimate
`advertising services for LabSolutions.
`
`The telemedicine doctors approved the expensive testing even though they werenot treating
`the beneficiaries and often did not even speak with them. From July 2016 through August 2019,
`LabSolutions submitted more than $463 million in claims to Medicare, including for medically
`unnecessary genetic tests, of which Medicare paid over $187 million. In that timeframe, Patel
`personally received over $21 million in Medicare proceeds.
`
`

`

`Patel was convicted of one count of conspiracy to commit health care fraud and wire fraud,
`three counts of health care fraud, one count of conspiracy to defraud the United States and to
`pay and receiveillegal health care kickbacks, four counts of paying illegal health care
`kickbacks, and one countof conspiracy to commit money laundering. He is scheduled to be
`sentenced on March 7, 2023, and faces a maximum penalty of 20 years in prison on the first
`conspiracy count, 10 years on each health care fraud count, five years on the second conspiracy
`count, 10 years on each kickback count, and 20 years on the third conspiracy count. A federal
`district court judge will determine any sentence after considering the U.S. Sentencing
`Guidelines and other statutory factors.
`
`Assistant Attorney General Kenneth A.Polite, Jr. of the Justice Department’s Criminal Division;
`Assistant Director Luis Quesada of the FBI Criminal Investigative Division; Special Agent in
`Charge Robert M. DeWitt of the FBI Miami Field Office; and Special Agent in Charge Omar Pérez
`Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG)
`Miami Regional Office made the announcement.
`
`The FBI and HHS-OIG investigated the case.
`
`Trial Attorneys Jamie de Boer, Emily Gurskis, Reginald Cuyler Jr., and Katherine Rookard of the
`Criminal Division’s Fraud Section are prosecuting the case.
`
`The case was broughtas part of Operation Double Helix, a federal law enforcement action led
`by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud
`Section, focused on fraudulent genetic cancer testing that has resulted in charges against
`dozens of defendants associated with telemedicine companies and cancer genetic testing
`laboratories for their alleged participation in one of the largest health care fraud schemesever
`charged.
`
`Updated December14, 2022
`
`Topics
`
`FINANCIAL FRAUD
`
`HEALTH CARE FRAUD
`
`Components
`
`Criminal Division
`(FBI)
`
`Criminal -Criminal Fraud Section
`
`Federal Bureau ofInvestigation
`
`

`

`Press Release Number: 2-1362
`
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`
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`February 20, 2024
`
`™)\ Office of Public Affairs
`
`U.S. Departmentof Justice
`
`950 Pennsylvania Avenue, NW
`
`Washington DC 20530
`
`YY Office of Public Affairs Direct Line
`202-514-2007
`
`Department of Justice Main Switchboard
`
`202-514-2000
`
`

`

`Case 9:19-cr-80181-RAR Document 544 Entered on FLSD Docket 08/21/2023 Page 1 of 7
`
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF FLORIDA
`WEST PALM BEACH DIVISION
`
`
`
`UNITED STATES OF AMERICA
`
`v.
`
`MINAL PATEL
`
`
`
`THE DEFENDANT:
`
`JUDGMENT IN A CRIMINAL CASE
`
`§
`§
`
`§
`§ Case Number: 9:19-CR-80181-RAR(s)(1)
`USM Number: 20565-104
`§
`
`Counsel for Defendant: Tama Beth Kudman
`
`§
`§
`§
`
`
`Counsel for United States: Marx Calderon
`
`
`
`
`
`☒ was found guilty on Counts after a plea of not guilty
`
`1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 of the
`Superseding Indictment
`
`
`The Defendant is adjudicated guilty of these offenses:
`
`
`Title & Section / Nature of Offense
`
`18 U.S.C. § 1349 - Conspiracy to commit health care fraud and wire fraud
`18 U.S.C. § 1347 - Health Care Fraud
`18 U.S.C. § 371 - Conspiracy to defraud the United States and to pay and
`receive health care kickbacks
`42 U.S.C. § 1320a-7b(b)(2)(A) - Payment of kickbacks in connection with
`a Federal health care program
`18 U.S.C. § 1956(h) - Conspiracy to commit money laundering
`
`Offense Ended Count
`
`08/31/2019
`08/31/2019
`08/31/2019
`
`1s
`2s, 3s, 4s
`5s
`
`08/31/2019
`
`6s, 7s, 8s, 9s
`
`08/31/2019
`
`10s
`
`
`The Defendant is sentenced as provided in pages 2 through 7 of this judgment. The sentence is imposed pursuant
`to the Sentencing Reform Act of 1984.
`
`It is ordered that the Defendant must notify the United States Attorney for this district within 30 days of any
`change of name, residence, or mailing address until all fines, restitution, costs, and special assessments imposed
`by this judgment are fully paid. If ordered to pay restitution, the Defendant must notify the court and United
`States Attorney of material changes in economic circumstances.
`
`
`
`
`
`August 18, 2023
`Date of Imposition of Judgment
`
`
`
`Signature of Judge
`
`
`
`
`
`
`
`RODOLFO A. RUIZ II
`UNITED STATES DISTRICT JUDGE
`Name and Title of Judge
`
`August 18, 2023
`Date
`
`

`

`Case 9:19-cr-80181-RAR Document 544 Entered on FLSD Docket 08/21/2023 Page 2 of 7
`
`AO 245B (Rev. FLSD 2/20) Judgment in a Criminal Case
`
`
`
`Judgment -- Page 2 of 7
`
`
`DEFENDANT:
`CASE NUMBER:
`
`
`MINAL PATEL
`9:19-CR-80181-RAR(1)
`
`IMPRISONMENT
`
`The Defendant is hereby committed to the custody of the United States Bureau of Prisons to be imprisoned for a
`total term of 324 months. This term consists of 240 months as to each of Counts 1s and 10s to run concurrently
`with each other and to run consecutively to Counts 2s through 9s; 60 months as to each of Counts 2s, 3s, 4s, 6s,
`7s, 8s and 9s to run concurrently with each other and consecutively to Counts 1s and 10s; and 24 months as to
`Count 5s, to be served consecutive to Counts 1s, 2s, 3s, 4s, 6s, 7s, 8s, 9s, and 10s.
`
`
`☒ The Court makes the following recommendations to the Bureau of Prisons:
`• Designation in or as near to FCI Butner or any Level Four Care Facility as possible or in or as near to
`FCI Jesup if FCI Butner or another Level Four Care facility are not available.
`• Placement in the Residential Drug Abuse Treatment Program (i.e. 500-hour drug treatment program)
`at a designated Bureau of Prisons institution.
`• Any mental health treatment available at a designated Bureau of Prisons institution.
`
`
`
`
`☒ The Defendant is remanded to the custody of the United States Marshal.
`
`
`
`
`RETURN
`
`I have executed this judgment as follows:
`
`
`
`
`
`
`
`
`
`
`
`
`
`Defendant delivered on ________________________________________ to ________________________________________
`
`at ________________________________________, with a certified copy of this judgment.
`
`
`
`
`
`
`
`
`
`___________________________________________
`UNITED STATES MARSHAL
`
`
`___________________________________________
`DEPUTY UNITED STATES MARSHAL
`
`
`
`
`
`

`

`Case 9:19-cr-80181-RAR Document 544 Entered on FLSD Docket 08/21/2023 Page 3 of 7
`
`AO 245B (Rev. FLSD 2/20) Judgment in a Criminal Case
`
`
`
`Judgment -- Page 3 of 7
`
`
`DEFENDANT:
`CASE NUMBER:
`
`
`MINAL PATEL
`9:19-CR-80181-RAR(1)
`
`SUPERVISED RELEASE
`
`Upon release from imprisonment, the Defendant shall be on supervised release for a term of three (3) years.
`This term consists of three years as to each of Counts 1s through 10s, all such terms to run concurrently.
`
`
`
`MANDATORY CONDITIONS
`
`
`1. You must not commit another federal, state or local crime.
`2. You must not unlawfully possess a controlled substance.
`
`
`
`3. You must refrain from any unlawful use of a controlled substance. You must submit to one drug test within
`15 days of release from imprisonment and at least two periodic drug tests thereafter, as determined by the
`court.
` ☐ The above drug testing condition is suspended, based on the Court’s determination that you pose
`a low risk of future substance abuse. (check if applicable)
`4. ☒ You must make restitution in accordance with 18 U.S.C. §§ 3663 and 3663A or any other statute
`authorizing a sentence of restitution. (check if applicable)
`5. ☒ You must cooperate in the collection of DNA as directed by the probation officer. (check if applicable)
`6. ☐ You must comply with the requirements of the Sex Offender Registration and Notification Act (34
`U.S.C. § 20901, et seq.) as directed by the probation officer, the Bureau of Prisons, or any state sex
`offender registration agency in which you reside, work, are a student, or were convicted of a qualifying
`offense. (check if applicable)
`7. ☐ You must participate in an approved

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