uBiome co-founders placed on leave amid FBI investigation

San Francisco-based genomics startup uBiome, which is currently under investigation by the FBI, the California Department of Insurance and several insurers for its billing practices, announced on May 1 that it has placed co-CEOs and founders Jessica Richman and Zac Apte on administrative leave.

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The company’s board of directors appointed John Rakow, uBiome’s general counsel, as interim CEO and confirmed that a special committee will be overseeing an independent internal investigation.

“We intend to cooperate fully with government authorities and private payors to satisfactorily resolve the questions that have been raised, and we will take any corrective actions that are needed to ensure we can become a stronger company better able to serve patients and healthcare providers,” Mr. Rakow said in a statement.

UBiome offers three at-home tests that use genetic sequencing to derive a clinical report from a patient’s gut, vaginal or nasal microbiome. On April 26, the FBI conducted a raid of the company’s headquarters, stemming from allegations that uBiome hires physicians to order their tests without patient approval and bills government programs, such as the private Medicare Advantage plan, for tests.

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