Fraudulent COVID Testing Company To Refund Victims: LA City Attorney

LOS ANGELES, CA — Californians who paid for coronavirus tests through Sameday Health could be eligible for refunds after a settlement accused the company of giving fake results to customers.

The Los Angeles-based company will have to pay more than $20 million under the conditions of the settlement, which was announced by Los Angeles City Atty. Mike Feuer this week.

Under the settlement, swaths of Californians who paid out of pocket for a PCR test between Oct. 1 and Dec. 31 2020 are expected to be refunded by the company.

Some customers who got a PCR test from Sameday outside that timeframe are eligible and customers who didn't get results within the advertised turnaround time are also eligible for a repayment.

Sameday Technologies, which operates under Sameday Health, has a total of 55 testing sites throughout the country, with 16 locations in Los Angeles County, including five in the city.

In Los Angeles County, there are 16 locations, with storefronts in Long Beach, Redondo Beach, Pasadena, Sherman Oaks, Manhattan Beach, Studio City, West Hollywood, downtown Los Angeles, Los Feliz, Hollywood, Culver City, Brentwood, Westchester, Santa Monica and Venice. The company also does house calls in the county.

Feuer and Los Angeles County District Attorney George Gascón filed the complaint, alleging that Sameday Health and its CEO Felix Huettenback falsely advertised that test results would be provided to customers within 24 hours, knowing that it couldn't make that guarantee. The city also alleged that they falsified and forged COVID-19 test results to at least 500 customers when it couldn't provide real results within 24 hours.

According to the complaint, the company would manipulate old PDF lab reports from previous tests to forge the results.

Feuer urged those seeking COVID-19 tests to report any additional suspicious testing companies or services to the city.

"It's beyond outrageous that anyone would falsify COVID tests, as we allege happened here. If you get a negative test, you assume it's safe to go to work, visit family and friends, or take a vacation. But the victims of this alleged scheme might unknowingly have spread COVID to others or failed to receive timely and appropriate care themselves," said Feuer.

The complaint also alleged that Sameday Health would fake results for customers whose tests were never processed by labs. Sameday Health also allegedly charged insurance companies that were already paying for COVID-19 tests an additional fee for unnecessary medical consultations.

Sameday Health responded to the settlement saying:

"Sameday Health was founded in September 2020 in an effort to make fast, reliable, COVID testing available to everyone. In the early days, amidst the chaos of massive surges in demand for services, and shortages in supplies, we failed to meet the standards for excellence our customers deserve," the company told City News Service.

Another $3.9 million settlement was reached with Dr. Jeff Toll, a Los Angeles-based doctor that the lawsuit alleged was a partner in Sameday Health's alleged insurance fraud. Sameday Health required people paying with insurance to consent to and participate in consultations with doctors to obtain a COVID-19 test, while people paying with cash were not required to obtain consultations, according to the complaint.

"My office is dedicated to protecting the people of Los Angeles County from dangerous and costly scams like these and seeking appropriate action against those who take advantage of consumers through fraudulent business practices," Gascón said. "It is not only illegal but also unconscionable to defraud people seeking medical assistance in the midst of a public health crisis. We will continue to work to bring justice to victims of all crimes, including fraud."

City News Service contributed to this report.

This article originally appeared on the Los Angeles Patch