Silent Partner

Healthcare benefit forms including: enrollment forms and applications, stethoscope, calculator. Affordable healthcare remains an important topic around the world!

The Department of Justice works collaboratively with local law enforcement and national law enforcement agencies to detect and prosecute healthcare fraud schemes that cross state lines.

Regan Dube and her husband Michael Dube have been sentenced for their roles in a multi-state healthcare fraud scheme. The Johnson City, Tenn., couple formerly owned and operated American Toxicology Labs (ATL), which they used as a tool to defraud Medicare and Medicaid programs.

Both Regan and Michael previously pleaded guilty to one felony count of healthcare fraud in the Western District of Virginia. Michael Dube pleaded guilty to an additional count of felony healthcare fraud in the Western District of Virginia and one count of felony healthcare fraud in the Eastern District of Kentucky.

Prior to the couple’s most recent scheme, Michael Dube had been previously excluded from participating in any federal healthcare program. This exclusion was the result of being convicted of one count of intentionally omitting information from reports, as required under the Controlled Substances Act, in March 2011. (Seems you can’t teach an old dog new tricks.)  

Despite his previous conviction, Michael and Regan Dube established ATL in Johnson City, Tenn., in May 2013. To avoid legal repercussions, Regan Dube served as the company’s registered agent and they used their home address as the company’s office and mailing address.

Michael Dube’s name was not listed anywhere in association with the company. (Of course it wasn’t.) ATL applied to participate in Medicare and Medicaid programs listing Regan Dube as the sole owner of the company.  (On the surface, that seems totally legitimate and not sketchy at all.)

ATL’s main source of business was to conduct urine screening for opioid treatment facilities. Michael Dube managed business arrangements with these facilities despite not being an authorized participant of Medicare of Medicaid programs. (Michael wasn’t exactly a “silent” business partner.) ATL continued to fraudulently bill Medicaid and Medicare for services using Regan Dube’s name.

Medicare, Virginia Medicaid, Kentucky Medicaid, and TennCare paid ATL a total of $8.5 million from May 1, 2014 to January 31, 2020. These payments were made under the pretense that ATL was being managed solely by Regan Dube as an authorized participant in federal healthcare programs. (Better off assuming anything a fraudster does is under false pretenses.)

Michael Dube also received kickback payments from third parties for recommending federal healthcare beneficiaries to those third parties for services. Michael and Regan Dube received a total of $441,646 in kickbacks. (Why stop at committing one illegal act when you can commit more?)  

Regan Dube was sentenced to three years of probation, four months of home detention, and 400 hours of community service. Michael Dube is not scheduled to be sentenced until February 11, 2021. The couple will be required to pay $9,015,046 in restitution to the Medicare and Medicaid programs they defrauded. (I hope they’re prepared to be in debt for the foreseeable future.)  

To report suspected Medicare fraud, call the Office of Inspector General’s national fraud hotline at 1-800-MEDICARE or fill out their online form.

Today’s Fraud of the Day comes from a Department of Justice press release, “Owner of Tennessee Drug Screening Lab Sentenced to Probation, Home Detention, and Community Service on Federal Health Care Fraud Charge,” published on November 4, 2020.

ABINGDON, Va. – Regan Dube, who along with her husband Michael Dube formerly owned and operated American Toxicology Labs, was sentenced this week in U.S. District Court in Abingdon, Virginia to three years of probation, four months of home detention, and 400 hours of community service. Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark G. Herring made the announcement today.

The Dubes, of Johnson City Tenn., previously pleaded guilty in U.S. District Court in Abingdon. Regan Dube pleaded guilty to one felony count of health care fraud in the Western District of Virginia.  Michael Dube pleaded guilty to two felony counts of health care fraud (one filed in the Western District of Virginia and one filed in the Eastern District of Kentucky). Michael Dube is scheduled to be sentenced February 11, 2021.






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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.