TRENTON—A Kenilworth, New Jersey-based lab and its owner/CEO agreed to pay $2.93 million to NJ Medicaid, the Office of the State Comptroller (OSC) announced today.

Eric Leykin, CEO/owner of RDx Bioscience, agreed to pay $2.93 million to New Jersey Medicaid. Leykin and RDx also agreed to pay the United States $10.32 million. In the settlement with OSC, Leykin acknowledged routinely overcharging Medicaid for lab tests, conducting unnecessary lab tests, and lacking documentation for claims, including missing signatures. All of this conduct violates Medicaid regulations.

"Overcharging Medicaid and conducting unnecessary tests is wasteful, improper, and harmful," said Kevin Walsh, Acting State Comptroller. “It drains resources from people in need.”

OSC’s Medicaid Fraud Division began an audit of claims that RDx submitted for payment between September 30, 2016 and August 31, 2019. OSC calculated that RDx received an overpayment of $1.46 million and assessed a civil penalty of $1.47 million, due to the persistent, improper nature of Leykin and his lab’s conduct.

The federal settlement resolved allegations concerning kickbacks paid to induce referrals to RDx for lab testing.

Leykin also is facing criminal charges in connection with a July 2023 incident in which he allegedly impersonated a technician to enter a competitor’s lab, then destroyed and stole the company’s equipment. OSC’s Medicaid Fraud Division has suspended Leykin and RDx from New Jersey Medicaid while that case is pending. (The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.)

RDx Bioscience said it is no longer operating. OSC’s settlement bars Leykin from owning or operating an entity enrolled in New Jersey Medicaid for three years.

“OSC will continue to go after and demand restitution from providers who waste Medicaid funds, violate requirements, and threaten the integrity of the New Jersey Medicaid program,” said Walsh.

Read the settlement letter.

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To report government fraud, waste, mismanagement, or corruption, file a complaint with OSC or call 1-855-OSC-TIPS.