A health-based startup called uBiome had been under the radar of the FBI for quite some time now owing to its questionable billings. The federal agents raided the San Francisco office of the company on Thursday on allegations of double billing their customers.
The agents of the FBI appeared at the office at Langton Street for conducting law enforcement activities as directed by the court, according to the statement given by an FBI agent to the CNBC. He also said that the investigation is still “ongoing”. The main function of the company was to sell tests called SmartGut and SmartJane for insurers who wanted their gut health monitored. The insurers are billed by uBiome only after the doctor prescribes the test. When the CNBC had conversations with people who were aware of the way uBiome works, they said that the company was double-billing the customers using the same samples for tests and did all of it without informing the patients. They decided to remain anonymous about their identity though as they were not entitled to reveal anything.
The CEO of uBiome has declined to comment on it though and also said that she had no idea about the allegations as well as the planned search by the FBI. Some of the employees from the company were asked to stay back at home though, according to the inside source. The person who wanted to stay anonymous only revealed about the move by the FBI of raiding the office and asking for computers of the employees. A spokesperson from uBiome said that they were cooperating with the agents to help them with their search. The company also seems to have taken a few measures in January when they fired close to 50 employees from their strength of 300 in order to realign the company properly.