US Government Sues Former Lab Executives Over Fraudulent Testing

Jay Johnson and Austin Whiles face allegations of orchestrating schemes for unnecessary Medicare tests.

The United States has filed a complaint against Jay Johnson and Austin Whiles, formerly of Capstone Diagnostics, under the False Claims Act. The complaint alleges they orchestrated schemes that cost Medicare approximately $13.7 million in unnecessary genetic and respiratory tests. Johnson, Capstone's ex-CEO, and Whiles allegedly targeted faith-based communities and senior citizens, capitalizing on church health fairs and paying kickbacks. These actions reportedly bypassed individualized medical judgment. Additional charges against Johnson include criminal health care and wire fraud. The government seeks recovery from Johnson's former wife and affiliated entities.