Ubiome Co-founders charged with Federal Securities, Health Care fraud Conspiracies.

[wildbill_52280]

This news article was over a year ago, but I was interested in what happened to the Company.

" According to the indictment, Apte, 36, and Richman, 46, both of whom resided in San Francisco at relevant times, co-founded uBiome in October 2012. Initially, uBiome offered a direct-to-consumer service, called “Gut Explorer,” which allowed an individual to submit a fecal sample that uBiome would analyze in its laboratory and produce a report comparing the customer’s microbiome to the microbiomes of others who had submitted fecal samples to uBiome, all for less than $100.

The indictment describes how the defendants eventually expanded uBiome’s business model to include development and marketing of “clinical” tests regarding the gut and vaginal microbiomes, which tests would ostensibly be used by medical professionals to make medical decisions and as to which uBiome would seek reimbursement from health insurance providers in amounts up to nearly $3,000. "

LINK TO ARTICLE

 

[wildbill_52280]

I just edited my post, but they were trying to charge people $100.00 to examine their microbiome, then charge customers insurance companies $3000.00 for reimbursement, so it was insurance fraud. Unfortunate for a new industry that we get scammers like this, educated at that. But its kind of what fascinated me about science and medicine in the first place, and that's why the FDA was formed as well. I wonder how much white collar crime has risen in recent times?