San Fernando Valley Woman Guilty In $359 Million Pandemic Test Fraud Scheme

GLENDALE, CA — A Glendale woman pleaded guilty to being involved in the fraudulent submission of nearly $360 million in claims for medically unnecessary tests during the coronavirus pandemic, according to authorities.

Lourdes Navarro, 64, pleaded guilty last week to conspiracy to commit health care fraud and wire fraud, authorities said.

“The defendant used her management position at a clinical testing laboratory to exploit the COVID-19 pandemic for personal gain,” Acting Assistant Attorney General Nicole Argentieri said in a news release.

From June 2020 to April 2022, Navarro conspired with Imran Shams to get nasal swab specimens from residents and staff at nursing homes and assisted living and rehabilitation facilities as well as from students and staff at schools, purportedly for COVID-19 tests, according to the U.S. Department of Justice. The samples allowed Health Care Providers Laboratory to conduct respiratory pathogen panel tests, even though only coronavirus tests had been ordered, authorities said.

Navarro and Shams submitted about $359 million in unnecessary claims to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, according to the department. They were reimbursed roughly $54 million, authorities said.

“Those who stole from government health programs during the COVID-19 pandemic not only violated federal law, they betrayed the public trust,” Attorney General Merrick Garland said in the news release.

Navarro is set to be sentenced Jan. 23 and faces up to 20 years in prison, according to the department. Shams previously pleaded guilty to conspiracy to commit health care fraud and is scheduled to be sentenced Jan. 9, authorities said.