South Carolina Labtech Diagnostics and CEO Settle Kickback Allegations with $6.8 Million Payment
Labtech Diagnostics and CEO Joseph Labash resolve federal kickback allegations, agreeing to significant financial penalties and guilty pleas.

Tony Agee
Jan 9, 2026
Labtech Diagnostics of Anderson, South Carolina, and its CEO, Joseph Labash, will pay at least $6.8 million to settle federal allegations of illegal kickbacks to local physicians.
This resolution pushes total civil recoveries from Labtech-related cases over $11.5 million, including previous settlements with nine area doctors.
Labtech also agreed to plead guilty to five criminal counts for offering and paying kickbacks disguised as rent, phlebotomy, or toxicology fees in exchange for lab test referrals between 2018 and 2021.
The scheme allegedly involved hand-delivered money orders and fraudulent contracts, with further claims of inflated equipment deals and free services to practices.
Whistleblower Mahmod Altwam will receive $1.36 million from the settlement.
In December 2021, Quest Diagnostics acquired most Labtech assets, integrating its Anderson lab and expanding Quest’s presence across South Carolina communities.
Federal officials stress the need for healthcare decisions to focus on patients, not profits, and urge reports of suspected fraud.
