Utah Lab Owner Admits $89 Million Health Care Fraud Kickback Scheme Involving Cancer Genetic Screening Tests
For Immediate Release
U.S. Attorney's Office, District of New Jersey
NEWARK, N.J. – A Utah resident today admitted his role in a $89 million health care fraud and kickback scheme involving genetic cancer screening tests (CGX Tests), Attorney for the United States Vikas Khanna announced.
Jordan Bunnell, 41, of Sandy, Utah, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count each of conspiring to commit wire fraud, conspiracy to commit health care fraud, and conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
Bunnell and others owned, operated, and had a financial interest in a marketing call center, a clinical laboratory, and a telemedicine company that conducted or arranged for a variety of medical tests. Bunnell and others paid kickbacks and bribes to various parties in exchange for referrals and orders for CGX Tests for beneficiaries of the Medicare program and other health care benefit programs, without regard for medical necessity. From October 2018 through July 2019, Bunnell and his conspirators caused a loss to Medicare and other federal and private health care benefit programs of approximately $89 million.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison; the charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison; the charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison. All three charges are also punishable by a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; special agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement Unit in Newark.
Updated March 28, 2023
Health Care Fraud