Georgia will benefit from a portion of another $27.5 million agreed to by the owner of a defunct medial lab accused of Medicaid fraud, the U.S. Justice Department announced Thursday.

Kevin S. Murdock, former CEO and owner of the now-defunct laboratory Premier Medical, Inc. agreed to the terms, acknowledging he was likely to lose in a lawsuit brought against him by the federal government and the states of Georgia, Colorado and South Carolina.

“The scheme perpetuated by the defendants in this case was fueled by greed and kickbacks,” said U.S. Attorney Bryan Stirling for the District of South Carolina, which pursued the case on behalf of the federal and state governments.

The plaintiffs alleged Premier Medical conspired with others in targeting Medicaid beneficiaries for medically unnecessary genetic testing that could cost as much as $12,000 in Georgia.

In 2018 and 2019, they traveled to the three states and set up tables in public spaces in low-income areas, such as bus stops, dollar stores and street corners, hoping to lure Medicaid beneficiaries, the U.S. Attorney’s Office said.

The governments also sued both Premier and Freedom Medical Labs, LLC in 2021 for fraud, waste and abuse against Medicaid, saying they were aware that orders and patient samples were obtained using kickbacks, in violation of the federal Anti-Kickback Statute.

The judgment resolves claims brought by a whistleblower who worked for Premier Medical.

The latest agreement brings the total amount in judgments and settlements to $114 million. The scheme cost Georgia’s Medicaid program $7 million.

Capitol Beat is a nonprofit news service operated by the Georgia Press Educational Foundation that provides coverage of state government to newspapers throughout Georgia. For more information visit capitol-beat.org.