Pulling back the curtain on a $200 million fraud scheme

Federal investigators call the Biodiagnostic Laboratory Services fraud scheme the largest they have ever seen

Two years after federal agents arrested David and Scott Nicoll, owners of Biodiagnostic Laboratory Services Inc. (BLS) in New Jersey, for orchestrating a 37-person, $200 million fraud scheme, CNBC is pulling back the curtain on how that scheme evolved. CNBC looks at how David Nicoll bought luxury cars, mansions and chartered private jets with money from a Medicare fraud scheme in which he paid physicians to send blood work to the lab. Scott Lampert, special agent in charge at the Department of Health and Human ‎Services, told the news outlet that the scheme, which remains under investigation, is one of the largest he's ever seen. He added that BLS was paying $150,000 to $200,000 in kickback payments each month to dozens of physicians, often orchestrating sham lease agreements to make the payments appear legitimate. Video