A Johnson City couple pleaded guilty last week to fraud charges stemming from an investigation into millions of dollars in federal health care program payments.
Michael Norman Dube, 59, who operated American Toxicology Labs in Johnson City, and Regan Gran Dube, 40, both pleaded guilty in U.S. District Court in Abingdon, according to a U.S. Justice Department news release.
Michael Dube had previously pleaded guilty in a federal district court Tennessee in 2011 to one count of intentionally omitting information from reports as required under the Controlled Substances Act, the release states. As a result, he was banned from participating in any federal health care program.
But authorities said he and Regan Dube established American Toxicology Labs in Johnson City in 2013, and ATL then proceeded to participate in Medicare and Medicaid programs.
Regan Dube was ATL’s registered agent, and the couple’s home address was listed as the company’s principal office, the release states. On applications to participate in Medicare and Medicaid programs, authorities said that Regan Dube was listed as the company owner, and the husband’s involvement was not disclosed.
The company conducted urine screening tests for entities that represented themselves as opioid treatment facilities. ATL received about $8.5 million in payments from Medicare, Virginia Medicaid, Kentucky Medicaid and TennCare between 2014 and 2020, the release states.
Authorities said Michael Dube also got “kickback payments” from third parties for referring people to those third-party services for which payment was made by federal programs. Over $441,000 in payments were deposited into the Dubes’ personal checking account.
Michael Dube pleaded guilty to two counts of health care fraud, with one filed in the Western District of Virginia and one filed in the Eastern District of Kentucky. Regan Dube pleaded guilty to one count of health care fraud in the Western District of Virginia.
Each of the defendants faces up to 10 years in prison, the release states.
Regan Dube will be sentenced on Sept. 15, and Michael Dube will be sentenced Sept. 17.
The couple will pay a total of $9,015,046, plus interest, for special assessments, fines, restitution and forfeiture, the release states. All money received from Medicare and Medicaid programs is required to be repaid.