Sign in Subscribe
Fraud

Massachusetts Attorney General Secures Guilty Plea, Restitution from New Bedford Clinical Lab for MassHealth Fraud and Kickback Schemes

Strategic Insights

— 1 min read

Massachusetts Attorney General Andrea Joy Campbell's office has secured a guilty plea and restitution from Optimum Labs, Inc., a New Bedford-based clinical laboratory, and its owner, William Owens, for their involvement in two separate MassHealth fraud and kickback schemes. The schemes, which spanned from 2017 to 2022, resulted in over $4.7 million in false claims to MassHealth.

Key Takeaways:

  • Optimum Labs, Inc. and its owner, William Owens, pleaded guilty to charges related to two separate MassHealth fraud and kickback schemes.
  • The schemes involved the submission of false claims for sober home urine drug tests, which were not payable by MassHealth, including tests that were medically unnecessary, not performed or properly authorized, and/or resulted from illegal kickback arrangements.
  • The fraudulent schemes resulted in over $4.7 million in false claims to MassHealth.
  • Optimum Labs pleaded guilty and Owens admitted to sufficient facts for two separate sets of charges brought by the AGO in May 2022 and March 2025.
  • The court ordered Optimum Labs to surrender $830,000, a portion of the $4.7 million it was found to owe to the Commonwealth.
  • Owens was ordered to serve two consecutive sentences of 2.5 years in the Suffolk County House of Correction, suspended for a probationary period of three years, during which he will be barred from any involvement with MassHealth billing, sober homes, and laboratories.

Statistics:

  • Over $4.7 million in false claims to MassHealth as a result of the schemes.
  • Optimum Labs was ordered to surrender $830,000, a portion of the $4.7 million it was found to owe to the Commonwealth.
  • 2.5 years probation for William Owens, including 150 hours per year of community service while on probation.
  • $5,922,320 grant award from the U.S. Department of Health and Human Services to the Massachusetts Medicaid Fraud Division for federal fiscal year 2025.

Sources:

  • "AG's Office Secures Guilty Plea, Restitution From New Bedford Clinical Lab For MassHealth Fraud And Kickback Schemes" (July 28, 2025) by the Office of the Attorney General.
  • Official press release from the Office of the Attorney General.

Read more