Lisa Madigan (D)

SPRINGFIELD, Ill. (Legal Newsline)-A Chicago drug testing company is being sued by the Illinois attorney general for allegedly billing the state more than $1.3 million for drug tests it never performed.

Attorney General Lisa Madigan says that K.K. Bio-Science, Inc. billed the state for unperformed drug tests from at least January 2004 until November 2006. The tests were for the Illinois Department of Children and Family Services to be performed as a part of child custody cases.

Madigan filed suit Tuesday against the company and its president, Anita Mahajan.

"This company blatantly defrauded the State of Illinois by submitting bills for work that it never performed," Madigan said. "We will take every action necessary to recover the taxpayer money that this company wrongfully obtained."

Madigan is seeking at least $3.9 million in damages and civil penalties. Cook County State's Attorney Anita Alvarez is prosecuting Mahajan on criminal charges stemming from the alleged fraud against the state.

The attorney general's office said K.K. Bio-Science won a no-bid contract in 1997 to conduct drug testing for the Illinois Department of Children and Family Services.

State investigators discovered the fraudulent billing in January 2007. The state then terminated its contract with K.K Bio-Science. The company was involuntarily dissolved late that year.

The lawsuit alleges that the company and its president violated the Illinois Whistleblower Reward and Protection Act. The lawsuit also alleges fraud and payment by mistake of fact.

From Legal Newsline: Reach staff reporter Chris Rizo at

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