Marietta lab owner accused of $300,000 genetic testing scam

COBB COUNTY, Ga. - A laboratory owner faces criminal charges and a civil complaint after state officials said he ran a massive genetic testing scam that stole hundreds of thousands of dollars from the Georgia Medicaid program.

What we know:

Attorney General Chris Carr announced that his Medicaid Fraud and Patient Protection Division filed a new civil complaint and a criminal indictment against Maged Awad, 61, of Marietta. The state's actions target a genetic testing scheme designed to exploit patient data and drain public taxpayer funds.

The indictment, returned by a grand jury in Cobb County, alleges that Awad fraudulently took more than $300,000 in payments from Georgia Medicaid. According to investigators, the laboratory owner routinely listed the names of local medical professionals on official billing paperwork to claim they requested genetic screenings when they never did. Awad faces three counts of Medicaid fraud.

Dig deeper:

The civil complaint targets both Awad and K&S Clinical Diagnostics Consulting Services, LLC, the clinical laboratory he operated. State officials allege that from May 2020 through at least June 2024, the business knowingly sent false claims to Georgia Medicaid for screening tests that completely lacked physician orders. In multiple cases, the patients listed on the state bills had never provided DNA samples to be tested in the first place.

The civil case is being brought forward under the Georgia False Medicaid Claims Act. State records show that since Carr took office, his specialized fraud division has secured more than 100 criminal convictions for Medicaid fraud, older adult abuse, neglect, and exploitation, resulting in nearly $26 million in restitution orders. The division has also brought in more than $138 million through civil settlements and judgements.

What we don't know:

Defense attorneys for Awad have not yet released a public statement regarding how they intend to fight the criminal counts or the civil complaint in court. Specific trial dates inside the Cobb County court system have not been scheduled.

State officials emphasize that the indictment and civil complaint only contain allegations against the named individuals and entities. Awad and his business are legally presumed innocent until proven guilty, leaving the burden on government prosecutors to prove the claims beyond a reasonable doubt at trial.

What they're saying:

State leaders emphasize that these recent enforcement actions are part of a wider crackdown on medical corruption.

"This is just one step in our ongoing efforts to fight fraud that exploits patients and the Medicaid program at large," Carr said. "We won’t hesitate to take both civil and criminal action to ensure that taxpayer dollars are appropriately safeguarded and only serve the legitimate needs of our citizens. Those who seek to cheat the system will be held accountable to the fullest extent of the law."