Utah lab owner pleads guilty in $89 million fraud scheme

NEWARK, New Jersey — A Utah man pleaded guilty to his role in an $89 million healthcare fraud scheme involving genetic screening tests for cancer.

Jordan Bunnell, 41 of Sandy, Utah, was charged with conspiring to commit wire fraud, conspiracy to commit health care fraud, and conspiring to defraud the U.S. in connection with a scheme to violate the Anti-Kickback Statute.

According to a release from the U.S. Attorney’s Office, Bunnell and others had financial investments in a lab, marketing call center, and telemedicine company that conducted and arranged 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 release states.

Bunnell profited by submitting false claims for genetic screening tests for cancer to federal and private healthcare programs he procured through unethical payments.

He pleaded guilty in federal court in March 2023, following an investigation involving multiple special agents of the FBI.