FRAUDBATCH S14HEALTH
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uBiome

FBI-raided microbiome startup. Founders indicted for $300M in fraudulent insurance claims, then fled.

$105M
Capital Raised
7 YRS
Lifespan
$300M+ in fraudulent insurance claims
Body Count

AUTOPSY REPORT

YC S14 microbiome testing startup that raised $105M. Built a consumer gut-testing kit, then pivoted to clinical diagnostics. The FBI raided their San Francisco office in April 2019 after discovering the company had been repeatedly billing insurers for tests patients never requested, 'upgrading' archived samples without consent and rebilling, and submitting over $300M in fraudulent reimbursement claims to health insurers . Co-founders Jessica Richman and Zachary Apte were indicted on federal securities and healthcare fraud charges. Both became FBI fugitives. The company filed for bankruptcy in September 2019 — five months after the raid. From YC Demo Day darling to federal fugitive in five years.

DAMAGE: $300M+ in fraudulent insurance claims

TIMELINE

2012Founded, later joins YC S14
2016Raises $22M Series B
2018Raises $83M Series C at $600M valuation
2019-04FBI raids San Francisco office
2019-09Files for bankruptcy
2021Co-founders indicted, become fugitives

SOURCES

→ DOJ: uBiome Co-Founders Charged With Fraud→ CNBC: What Really Happened at uBiome
← Optifye.aiConvoy →

Satirical project. Not affiliated with Y Combinator. All information from public records.