FBI Searches Microbiome Testing Startup uBiome In Billing Probe

An anonymous reader quotes a report from The Wall Street Journal: Special agents from the Federal Bureau of Investigation searched the offices of lab-test startup uBiome Inc. on Friday morning (Warning: source paywalled; alternative source), according to a person with knowledge of the matter. The FBI is investigating uBiome's billing practices. An FBI spokeswoman said, 'I can confirm that special agents from the FBI San Francisco Division are present at 360 Langton Street in San Francisco conducting court-authorized law-enforcement activity. Due to the ongoing nature of the investigation, I cannot provide any additional details at this time.' According to public records, uBiome has a headquarters office at that address.

uBiome sells tests for the microbiome, which refers to the group of microorganisms that live in the digestive tract and other parts of the body, under names including Explorer and SmartGut. The company, which calls itself the 'leading microbial genomics company,' was one of the earliest firms in the microbiome testing field, launching in 2012 with a crowdfunding campaign that raised $350,000. Last year, uBiome said it had raised $83 million from firms including OS Fund and Y Combinator. uBiome describes its SmartGut and SmartJane tests as 'an insurance-reimbursed test ordered by a health-care provider.' 'We are cooperating fully with federal authorities on this matter. We look forward to continuing to serve the needs of healthcare providers and patients,' a spokeswoman for uBiome said Friday. In an interview last week that included questions about scrutiny of uBiome's billing practices, uBiome Chief Executive Jessica Richman said that 'compliance is our highest value' and that uBiome's billing and other practices are proper.

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