United Health Law Suit vs. Sky Toxicology – Patient Brokering


SFYB Legal Consultant

Breaking Down the United Health Law Suit vs. Sky Toxicology, Frontier Toxicology, numerous other labs, treatment centers and individual owners AND DOES 1-150.
Case Number: 9:16-cv-80649-RLR,
United States District Court – Southern District of Florida

By M. David (Mick) Meagher, Esq.

Over the past several years many treatment centers have been enticed into buying “memberships” in Limited Liability Partnerships set up by drug testing laboratories. These arrangements have returned large sums of money to investors. In some instances the amounts returned would make Bernie Madoff and J. David Dominelli look like rank amateurs in the world of financial schemes.

bad news

The basics of this law suit by United Health are that various laboratories, treatment centers, individuals and Sober Living centers have defrauded the insurance company by excessive billing, and by either paying or being paid kick-backs for referring drug tests to the labs. In the lawsuit, United claims they were defrauded out of more than $50,000,000.00 by these actions.


The way the scheme works is simple. An “investor” buys a membership. The investor then refers urine samples to the lab for analysis. By way of example, the lawsuit alleges Elements Behavioral Health, Inc. (owners of Promises in the Los Angeles area), bought an investment of Thirty Thousand Dollars ($30,000.00), and refer their UA’s to Sky Toxicology. In return, they received Six Hundred Thousand Dollars ($600,000.00) per month. The suit alleges that Solid Landings of Costa Mesa, CA, actually forged doctors signatures to have a medical referral for the UA’s. The suit names the facility as well as two of its owners as defendants. Another California individual named in the suit is Kory Avarell, owner/operator of Above it All.

Other relevant posts and news articles on this topic click image below and learn more about this


A significant red-flag as to the impropriety of these actions is the fact that if an “investor,” whether a treatment program or owner of a program, did not refer a sufficient number of specimens for testing, the Lab would remove them from the Partnership. If you did not have referrals to make, you could not buy in to the partnership.

In response to these acts, United has sued claiming the participants have committed fraud, deception, unfair business practices, negligent misrepresentations, interference with the contract between United and its insured, as well as unjust enrichment. The fraud comes in the form of excessive billing; lab tests that are not medically necessary; and violations of the various State laws that prohibit self-referrals and kick-backs for referrals.

In addition, it alleges the waiver of co-insurance and/or deductible costs that should be paid by the patient constitutes fraud and therefore is an unfair practice, interferes with the relationship between the insurance company and its clients, and unjustly enriched the defendants.

A review of the list of defendants in this law suit is long. The current defendants include Sky Toxicology, Ltd., Sky Toxicology Lab Management, LLC, Frontier Toxicology, Ltd., Ft Lab Management, LLC, Hill Country Toxicology, Ltd., Eclipse Toxicology, Ltd., Eclipse Lab Management, LLC, Axis Diagnostics, Inc., Dr. William “Wade” White, Lance Hupfeld, Bradley West, Elements Behavioral Health, Inc., South Florida Recovery Center, LLC, Solid Landings, LLC, Kory Avarell, Stephen Fennelly, Elizabeth Perry, Ferriel Consulting Group, Inc., Jeffrey L. Cohen, LLJ Consultants, Inc.

Importance_of_TDOf critical importance is the fact that the law suit also names “Does 1 – 150.” This means that United does not yet know all of the companies and individuals involved, but intends to find out who they are and add them to the law suit. United’s attorneys will use “Discovery,” a legal device to search the records of the labs and other defendants to see who else bought in and was paid for their referrals. This legal device then allows United to go back to court and say “through discovery, we have identified XYZ center, or individual who also received these kickback payments.” As discovery takes place, new defendants will likely be added to the suit.

damages-640x480The damages, the money and the retraining orders being sought by United, if they prevail at trial has the potential to be massive. United is seeking an award that would include the return of all of the money they paid out; statutory treble damages (three times the amount of money paid out, in addition to the money they paid out); an award of punitive and exemplary damages, which cannot be discharged in a bankruptcy; a court order for Declaratory and injunctive relief that would prevent them from these acts again. In addition they are asking for reasonable and necessary attorneys’ fees; the costs of court; and prejudgment and post-judgment interest.

The risk exposure if the defendants lose is a monetary judgment against them that could easily run into hundreds of millions of dollars in damages and millions of dollars in legal fees to be paid to United. For corporate defendants this could mean the closing of the business after all of the assets are sold off to pay the judgment. For individual defendants, this could mean a loss of virtually all of their assets to satisfy a punitive damages award. Secondary risks include both State and Federal criminal investigations and potential prosecution for these acts as well as the loss of the professional licenses for the doctors that are involved.

Even if some of the defendants were to avoid a finding against them, the likely costs of their defense is well over $1,000,000.00. If they were to prevail, they would not be able to recovery the legal fees they paid for their defense.

new st


2643 Gianelli Lane
Escondido, CA 92025


Big Blink


FB like our page

FB Join Group


Click for more information about advertising on this website


Robert Henslee
Ceo & Founder www.StopFryingYourBrain.com at https://www.linkedin.com/in/gorillamarketing
I am the CEO & Founder of Stop Frying Your Brain which is my pet project. I have many other concerns as well. I enjoy the title usually of "CCO" Chief Content Officer and others with many companies. This is a five year project and I'm about half way of year three. My user community of 175,000 define the build as this is a community asset. We had 4 to 6 million unique views in 2016 depending on which set of analytics you wish to believe. We switched servers several times and lost much of the raw data.

At SFYB Our mission statement is to bring good information to the individuals that need it so they can make excellent informed decisions about the services they are seeking. If you're in this industry and need some help with your concern reach out to me 772.206.6676 (texting works best). I can truly help you.


If you have a challenge my goal is to connect you with the best information and leaders in the industry. One thing I am certain of there is something here that can help you. Good luck and if I missed something please reach out to me.

Professionally I'm a "Big Data" Lead Gen Internet (Community Mkting Models) This is my ORGANIC model - You should see what I can do with PPC The fact you're reading this speaks to the results of organic B2C models

What I do
Alcohol/Drug Rehab/Addiction Verticals - Mobile
Publisher/Founder SFYB - We Are Here To Help
PPC Is My Specialty - Need Prospects Get In Touch www.EmarketingRobots.com Mobile Future Is Now !

I'm currently Active in
* Seeking Partnerships Apps Developers Drug/Alcohol/Addiction
* Looking For Mkting Partners Community Marketing Rehab/Drug
* Co-Opt PPC Model Opportunities Reach Out Drug/Alcohol/Addiction
* Turn-Key Drip Campaigns for Small To Medium Businesses
* Looking for facility operators to test our mobile apps
* Make VC capital available for treatment facilities for valued added

I do extensive Internet marketing consulting for individuals, startups and mega brands. I can save you big money, introduce you the market and generate customers for you quickly. I am the technical side of the house. I specialize in all the gadgetry, wizardry, social media and technology necessary to put your house in order quickly. Over 40 years experience

Our network providers, owns, operate and dominate the largest social media foot print in the addiction vertical consisting of hundreds of groups on the different social media platforms. We help both service providers and USERS with the largest audience of people exploring services and the largest network of professional service providers. PLEASE JOIN US.

I built StopFryingYourBrain.com as an option for operators who cannot compete against the mega brands and their multi-million-dollar pay per click budgets. StopFryingYourBrain.com is a community marketing content model which soon will out perform pay per click models in the foreseeable future.

We deploy and operate on 65 different mobile devices and have extensive emarketing capabilities on mobile devices on the back-end. We have agency quality available for our clients enabling them with drip-marketing campaigns.

Our website is constantly under development as we split test and learn exactly what the market wants, what works and how to build it. We are not afraid to test because this is a crowd source asset. We are defined by the community and users we service.

We are averaging around 2500-3500 views per day, many 10k to 20k peaks. Our busiest day 2016 was 50,283 people in one day. We just upgraded our platform to handle 60k views per-day and we are growing FAST.

I have over 40+ years of experience, plenty of references and you'll find me to be the real deal. You can check them by clicking on the LinkedIn button below. If you're interested in pay per click I can show you how to do this at the lowest possible cost while achieving the maximum results.

Get in touch with me today by clicking on the email icon in the bio below. Or better yet you can call me directly on my cell phone 772. 206.6676 We especially like non-profits and veterans as I'm a veteran myself.

Thank You Robert Henslee Publisher (Stop Frying Your Brain) Ph 772.206.6676
Robert Henslee on BloggerRobert Henslee on EmailRobert Henslee on FacebookRobert Henslee on GoogleRobert Henslee on LinkedinRobert Henslee on PinterestRobert Henslee on TwitterRobert Henslee on WordpressRobert Henslee on Youtube

Filed under: Uncategorized