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The FBI raided the office of uiBiome in San Francisco on April 25
The FBI raided the office of health-care start-up uBiome in San Francisco on Friday because of the dubious way the company charged consumers.
Federal agents went to the office at 360 Langton Street in South Market, for "court-ordered policing activities," an FBI spokesman said in a statement. to CNBC, stating that the investigation was "in progress". reported on the raid.
UBiome sells health tests called SmartGut and SmartJane to people who want to monitor their intestinal health. The company charges the insurers after the doctors prescribe the products.
Over the last few months, CNBC has met with three people familiar with the company's operations and learned that UBiome routinely billed patients' plans twice for tests using the same sample and without warning them. The people requested anonymity because they were not allowed to talk about ubiome.
Jessica Richman, CEO of UBiome, could not be contacted for comment. Richman told The Wall Street Journal that she "had no knowledge of the search", but a person close to the case told CNBC that some employees had been ordered to do so. stay home after work Friday. The person, who asked not to be named because of the confidentiality of the case, also said that the FBI had broken down the company's office door and requested access to employees' computers.
Employees leave the offices of the ubiome on Friday after a search at the FBI.
Laura Batchelor, CNBC
Research began Friday morning, according to the people there. At the time of publication, CNBC producer Laura Batchelor stated that at least four federal agents remained inside the company's office and that their cars were still parked outside.
"We are cooperating fully with the federal authorities in this area," said a spokesman for ubiome. "We look forward to continuing to meet the needs of healthcare providers and patients."
Anthem, a health insurer, has reported uBiome internally for its extra-billing practices, said two people familiar with the case, who had asked not to be named because the case was still ongoing. Anthem did not immediately return a request for comment.
The science behind UBiome's tests is still in its infancy. Some scientists are skeptical about tests that claim to provide information about the microbiome, the community of microorganisms living in the digestive tract, because they claim that the results are not supported by scientific research.
In January, UBiome told CNBC that it had laid off more than 50 of its 300 employees in an effort to "realign its operations." The company has leveraged more than $ 100 million in venture capital from companies such as 8VC and Y Combinator.
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