HHS Inspector General Exposes $11.5 Million Genetic Testing Fraud Scheme

by Anna D’Agostino and Alden Hey

On September 19, 2025, the Department of Justice (“DOJ”) announced that Robert Desselle, a healthcare marketer from Sarasota, FL, was convicted on charges of fraudulently billing $11.5 million in false claims to Medicare. As part of the sentencing, Desselle was sentenced to 57 months in prison and ordered to pay $4.5 million in restitution and forfeit the $2.1 million of his own personal proceeds. The scheme was exposed as part of an investigation by the DOJ’s Health Care Fraud Unit, a team of over 80 white-collar prosecutors with experience in complex litigation.

Details of the Genetic Testing Fraud

Court documents revealed that Desselle and his affiliates approached Medicare recipients at grocery stores, pharmacies, and car dealerships and deceived them into engaging in genetic testing that they did not need. Desselle and others bribed a telehealth company to generate physician orders for the tests, which were later sent to clinical laboratories which provided Desselle kickbacks for the referrals. Between just June 2018 through December 2020, these laboratories billed over $11.5 million to Medicare, violating both the False Claims Act (FCA) and the Anti-kickback Statute (AKS).

Physician kickbacks, the FCA, and the AKS

The FCA prohibits individuals and entities from making false representations to the federal government for the purpose of obtaining payment or reimbursement.  In this case, bribing telehealth physicians to prescribe genetic testing that was not medically necessary and submitting claims for those tests to Medicare for reimbursement implicated the FCA.

The Anti-kickback Statute (AKS) similarly outlaws soliciting, offering, or receiving anything of value in exchange for referrals to medical care reimbursed by the federal government. AKS violations are often prosecuted alongside FCA claims, as kickbacks commonly result in false claims.

The genetic testing fraud case involved two instances of kickbacks: first, by bribing the telehealth physicians to prescribe the genetic tests, and second, by the testing laboratories paying Desselle in exchange for referring his business to them. These inducements resulted in false Medicare claims for services that were not medically necessary.

While Desselle’s genetic testing fraud scheme was investigated and prosecuted as a criminal violation, many FCA and AKS cases are litigated civilly and reach large monetary settlements on behalf of the federal government.  If the case was brought by a private individual who assisted in uncovering the scheme (referred to as the “relator” or “whistleblower”), he or she may receive a portion of the funds recovered.

Genetic Testing Fraud: A Growing FCA Enforcement Priority

As the public interest and entrepreneurial opportunity around genetic testing continue to grow exponentially, the scientific understanding and legal regulation of the industry sometimes struggle to keep up. As a result, the potential for kickbacks, fraud, and inducements remains high. Because of this, the DOJ has come to view genetic testing as a top priority for health care fraud investigations.  Indeed, as part of the 2025 National Health Care Fraud Takedown, the DOJ charged 49 defendants in connection with the submission of more than $1.17 billion in false claims for telemedicine and genetic testing fraud schemes to Medicare.

 Whistleblower Advocacy at Miller Shah LLP

Miller Shah has extensive experience working alongside the DOJ to investigate, litigate, and resolve FCA and AKS cases. The Firm’s healthcare fraud practice spans a variety of sectors, and our attorneys have worked with a diverse range of whistleblowers including healthcare professionals, medical and pharmaceutical sales representatives, and other industry insiders. Miller Shah has achieved national recognition for its litigation of whistleblower cases, with an earned track record of professionalism, diligence, and success.

Prioritizing Whistleblower Support

In addition to expert legal advice, Miller Shah recognizes that whistleblowers need anonymity, comfort, and support throughout the litigation process. We are dedicated to helping whistleblowers maintain confidentiality and avoid or combat adverse employment consequences throughout their involvement in FCA cases. Additionally, we work to maximize your monetary reward as an FCA whistleblower, which can be up to 30% of the final settlement.

If you believe you have information about genetic testing fraud or another healthcare fraud scheme, contact us or fill out the form below for a free consultation.