Medical Lab Owner Indicted For Medicaid Fraud

Kentucky Attorney General Andy Beshear

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The owner of a medical laboratory in Perry County is facing felony theft and fraud charges in Kentucky. The office of Kentucky Attorney General Andy Beshear says Eric Daum, who owns Riverside Cytology Laboratory in Tell City, has been indicted for allegedly defrauding the Kentucky Medicaid Program.

The indictment says in 2015 and 2016, Daum allegedly fraudulently billed Kentucky Medicaid for laboratory services despite the fact that the laboratory did not employ a qualified director. As a result, Daum received more than $10,000 in payments from the program.

Beshear’s office says Daum faces one felony count of theft by deception over $10,000 and one felony count of devising or engaging in a scheme to defraud the Kentucky Medical Assistance Program of $300 or more. Daum is scheduled to appear in Franklin Circuit Court in Frankfort, Kentucky on October 26.