SF poop-testing startup, once compared to Theranos, charged in $60M fraud scheme

[Nevilledog]

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Jared Holt
@jaredlholt
Poop scheme

SF couple who ran trendy poop-testing startup charged with fraud
A married pair of San Francisco entrepreneurs were indicted Thursday on multiple federal...
sfgate.com
5:12 PM · Mar 21, 2021

https://www.sfgate.com/news/editorspicks/article/ubiome-richman-apte-sec-filing-charges-fraud-16042042.php

A married pair of San Francisco entrepreneurs were indicted Thursday on multiple federal charges, the latest twist in the saga of a once trendy, now bankrupt fecal matter-testing startup.

Zachary Schulz Apte and Jessica Sunshine Richman, co-founders of defunct microbiome testing company uBiome, are accused of bilking their investors and health insurance providers, federal prosecutors said. They were indicted Thursday on multiple federal charges, including conspiracy to commit securities fraud, conspiracy to commit health care fraud and money laundering.

Their court appearances have not been scheduled, and it was not immediately clear if they had attorneys who could speak on their behalf.

Apte, 36, and Richman, 46, founded uBiome in 2012 as a direct-to-consumer service called “Gut Explorer.” Customers would submit a fecal sample that the company analyzed in a laboratory, comparing the consumer's microbiome to others' microbiomes, prosecutors said. The service cost less than $100 initially.

The company grew to include “clinical” tests of gut and vaginal microbiomes, which were aimed to be used by medical providers so uBiome could seek up to $3,000 in reimbursements from health insurance companies. The federal indictment states that uBiome sought upwards of $300 million in reimbursement claims from private and public health insurers between 2015 and 2019. The company was ultimately paid more than $35 million for tests that “were not validated and not medically necessary."

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[NewHendoLib]

1. 2 things. fools and their money are soon parted. and..if it sounds too good to be true - it is.

of course, people are free to piss away their money any way they wish. what gets my goat are the many assholes who are fine taking advantage of them.

[Nevilledog]

2. Or poop away....

[superpatriotman]

3. UBiome is full of shit

Literally

[Princess Turandot]

4. Their court appearances have not been scheduled because they're apparently on the lam. Always fun!

The defendant info sheets in the indictment have a check mark next to 'fugitive'.

[Blue_true]

5. Someone need to send a bounty-hunter after them who doesn't take any shit. nt

[Yavin4]

6. They should be easy to find.

Just follow the brown streak.