January 18, 2006- United States Attorney Patrick L. Meehan today announced the filing of an information* against Kapil Wadehra, charging him with a scheme to defraud his employer, Quest Diagnostics, Inc., and failure to report income from that scheme on his tax returns for the years 1999 and 2000. The information charges that Wadehra recruited others to submit to Quest, through companies established solely for the purpose of billing Quest, or pre-existing companies that had a previous business relationship with Quest, invoices for goods and services that Wadehra allegedly provided to Quest. Wadehra directed these persons to submit to Quest invoices charging grossly inflated prices. Wadehra authorized payment of the fraudulent invoices, and required his associates to pay him a large percentage of the proceeds. The information further charges that Wadehra filed false tax returns for the years 1999 and 2000, in that he failed to declare a substantial portion of the income that he derived from this scheme.

The case was investigated by IRS CID and has been assigned to Assistant United States Attorney Bernadette McKeon.