The US District Court said Aaron Williamsky and Nadia Levit exercised control over the New Zealand company from New Jersey.
They did so by directing others through WhatsApp and text messages to send kickback payments.
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“Owens participated in a kickback and bribery scheme with testing companies that arranged for at-home cancer genetic tests (CGX),” the US Attorney’s Office said.
“Owens owned and controlled marketing companies in California through which he and his conspirators identified Medicare beneficiaries to target for CGX testing.”
Medicare is a US federal health insurance programme for senior citizens and for some young people with disabilities.
It handles hospital insurance, medical insurance and prescription drug coverage.
The US Attorney’s Office said Owens and co-conspirators provided personal and medical information about Medicare beneficiaries to testing companies.
Then CGX testing kits were sent.
Once the tests were completed and returned, Owens’ conspirators made claims for Medicare reimbursement.
To further conceal the scheme, Owens entered into a sham contract with the New Zealand company.
That contract made it seem like one of Owens’ marketing companies was engaged in and being paid for legitimate marketing and referral services.
“Owens then generated invoices falsely purporting that the marketing company was providing hourly referral services for the New Zealand company,” the US Attorney’s Office added.
“Instead, Owens received payments from the New Zealand company based solely on the number of CGX tests that Medicare reimbursed.”
The offences in the US carried a maximum potential penalty of five years in prison and a fine of US$250,000 ($447,000), or twice the gain or loss from the offence, whichever was greatest.
The FBI and multiple US agencies were involved in the investigation.
Medicare reimbursed healthcare providers approximately $7700 (NZ$13,750) for each qualifying CGX test, a US District Court indictment for Owens said.
Generally, qualifying individuals had a cheek swab to collect a specimen, which was then sent to a laboratory for a CGX test.
The laboratory in this case was enrolled as a Medicare supplier and authorised to bill Medicare for the tests.
But the indictment said Owens knowingly executed “a scheme and artifice” to defraud healthcare benefits.
The goal of the conspiracy was for Owens and co-conspirators to profit using false and fraudulent claims for CGX tests.
The scam involved making unsolicited calls for various medical services to elderly Medicare beneficiaries.
Owens and four others agreed to provide testing companies with people eligible for Medicare payments, regardless of medical necessity.
The fraudsters caused CGX testing kits to be sent to the beneficiaries regardless of whether they needed or wanted them.
Testing companies, through Williamsky and Levit, paid kickbacks to Owens and others, the indictment said.
Individual kickback payments ranged from about NZ$3000 to about NZ$3570.
False invoices were also used, the indictment said.
The conspiracy from late 2018 until January 2020 meant Medicare paid testing companies millions of dollars for the CGX tests.
The indictment said the New Zealand company in 2019 wired US$110,000 ($196,500) as kickbacks for 55 patient leads.
Co-conspirator Christian Mohases of Santa Ana in California pleaded guilty in 2020 to healthcare fraud.
Last February, Asbury Park Press said Levit’s and Williamsky’s actions caused losses surpassing US$290 million ($517m).
“They both pleaded guilty in 2019, unleashing a domino effect that is now bringing before authorities the names of those involved,” Asbury Park Press added.
It was not immediately clear when Owens would be sentenced.
The use of shell companies to conduct crime was discussed in a Cabinet paper more than 10 years ago, when officials identified such scams as potentially damaging to New Zealand’s reputation.
The Cabinet paper said one such reform aimed at tackling the misuse of shell companies was the Anti-Money Laundering and Countering Financing of Terrorism Act, which took effect in 2013.
In 2015, the Organised Crime and Anti-corruption Legislation Bill was passed to tackle issues including money laundering.
In 2022, the Government proposed a further crackdown on global and domestic criminals who used businesses to hide money laundering, tax evasion and terrorism financing.
