United States v. Duz-Mor Diagnostic Laboratory Inc‪.‬

Duz-Mor Diagnostic Laboratory, Inc. was convicted in a nonjury trial of Medicare and Medi-Cal fraud in violation of 42 U.S.C. §§ 1395nn(b)(2)(A) and 1396h(b)(2)(A). On appeal Duz-Mor contends that its conviction must be reversed because the conviction was inconsistent with the trial court's dismissal of the indictment of Irigene Morehead, the corporate officer and only human agent representing the corporation in the challenged transaction. Duz-Mor also questions whether the government proved that an offer of an illegal kickback was made, and that the services which Duz-Mor sought to provide were in fact reimbursable from federal funds. Duz-Mor is a clinical laboratory certified as a Medicare and Medi-Cal1 provider. Irigene Morehead, the individual defendant below, was the president and chief technologist of Duz-Mor. She and her husband were the sole shareholders of Duz-Mor.