Pills and handcuffs Theindictment marks the third major case federal prosecutors havefiled alleging billing fraud at Perez-affiliated hospitals. (Photo:Shutterstock)

A Miami entrepreneur who led a rural hospital empire was chargedin an indictmentunsealed Monday in what federal prosecutors called a $1.4 billionfraudulent lab-billing scheme.

In the indictment, prosecutors said Jorge A. Perez, 60, and nineothers exploited federal regulations that allow some ruralhospitals to charge substantially higher rates for laboratorytesting than other providers. The indictment, filed in U.S.District Court in Jacksonville, Florida, alleges Perez and theother defendants sought out struggling rural hospitals and thencontracted with outside labs, in far-off cities and states, toprocess blood and urine tests for people who never set foot in thehospitals. Insurers were billed using the higher rates allowed forthe rural hospitals.

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