South Carolina Men Indicted in Alleged $3 Million COVID-19 Testing Fraud Scheme
A federal grand jury has indicted three South Carolina men for allegedly defrauding the government of millions of dollars during the COVID-19 pandemic by billing for worthless and unreliable tests. The scheme involved manipulating testing processes and submitting false claims to federal healthcare programs.
Details of the Indictment
Kevin Murdock, 56, of Greenville; Thomas C. Lee, 56, of Greenville; and Vidhya Narayanan, 45, of Atlanta, were charged with conspiracy to commit healthcare fraud and healthcare fraud. The indictment alleges that the three men, acting as officers of Premier Medical Laboratory Services Co., headquartered in Greenville, South Carolina, engaged in a scheme to maximize profits by compromising the accuracy of COVID-19 tests.
According to the indictment, the men “pooled” test samples instead of conducting individual tests, a practice that allowed for faster processing but compromised the reliability of results. The company allegedly manipulated software to render test results for hundreds of thousands of individuals unreliable.
The fraudulent claims were submitted to Medicare, TRICARE and Medicaid, resulting in a loss of millions of dollars to the government. The indictment states the scheme involved submitting claims for tests that were not medically necessary or properly performed.
Previous Legal Issues
Kevin Murdock previously agreed to a $27.5 million civil consent judgment in a separate case involving medically unnecessary genetic testing billed to the government, according to the U.S. Department of Justice. That case involved claims brought by the federal government and the states of South Carolina, Colorado, and Georgia.
COVID-19 Impact and Testing Importance
The indictment highlights the critical role of accurate COVID-19 testing during the pandemic. More than 1 million people in the United States and over 7 million worldwide have died from COVID-19. Testing was essential for diagnosis, informing public health measures, and protecting vulnerable populations. Vaccines also offered substantial protection against the virus.
Investigation and Prosecution
The case is being investigated by the FBI Columbia Field Office and the Department of Health and Human Services Office of the Inspector General. Assistant U.S. Attorney Bill Watkins is prosecuting the case.
The defendants each face a maximum sentence of 10 years in prison and a $250,000 fine if convicted.
This is a developing story and will be updated as more information becomes available.
This story was originally published March 11, 2026 at 1:23 PM.