Two men from Texas and Florida have been sentenced to prison for their involvement in a scheme that targeted Medicare beneficiaries with unnecessary genetic testing. Paul Wexler, 56, of Spring, Texas, received a four-year sentence, while Paul Bleignier, 64, of Seminole, Florida, was sentenced to two years. Bleignier also received an additional two years to be served concurrently for falsifying ownership information on Medicare enrollment forms for a clinical laboratory.
Court documents show that Wexler and Bleignier operated a telemarketing company that recruited individuals for cancer genetic (CGx) testing. This type of test uses DNA sequencing to identify gene mutations linked to increased cancer risk but does not diagnose current cancer. Medicare only covers CGx testing under limited circumstances. The two men and their associates solicited and accepted kickbacks in exchange for referring patients for tests that were not eligible for reimbursement by Medicare. Their actions resulted in $17.3 million billed to Medicare and $5.2 million paid out.
While the fraud case was ongoing, Bleignier opened a clinical laboratory and enrolled it in Medicare using false ownership information by listing other people’s identities instead of his own. Claims from this lab were also tied to kickbacks, leading to $3 million in improper claims submitted to Medicare and over $900,000 paid out.
Wexler pleaded guilty in April 2024 to conspiracy charges related to health care fraud and wire fraud. Bleignier pleaded guilty in November 2022 to conspiracy charges involving defrauding the United States and accepting kickbacks; he later pleaded guilty in November 2024 to making false statements about health care matters. Both men were ordered at sentencing to pay $1.2 million each in forfeiture as well as $5.2 million in restitution. Additionally, Bleignier must pay another $916,106 due to his role in falsifying laboratory ownership records.
“Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; U.S. Attorney Gregory W. Kehoe for the Middle District of Florida; and Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.”
The investigation was conducted by HHS-OIG and the FBI.
The case was prosecuted by Trial Attorney Charles D. Strauss from the Criminal Division’s Fraud Section.
The Justice Department's Fraud Section leads efforts against health care fraud through its Health Care Fraud Strike Force Program which has charged more than 5,800 defendants since its inception in March 2007 across multiple federal districts who together have billed government programs and insurers over $30 billion (https://www.justice.gov/criminal-fraud/health-care-fraud-unit). The Centers for Medicare & Medicaid Services are working with HHS-OIG to hold providers accountable for involvement in fraudulent schemes.
