Two men from Texas and Florida were sentenced Thursday for leading a telemarketing scheme that defrauded Medicare by promoting medically unnecessary genetic testing, resulting in millions in losses.
Paul Wexler, 56, of Spring, Texas, received a four-year prison sentence, while Paul Bleignier, 64, of Seminole, Florida, was sentenced to two years. Bleignier also received a two-year concurrent sentence for falsifying Medicare enrollment documents for a clinical laboratory he opened during the investigation.
According to court documents, Wexler and Bleignier targeted Medicare beneficiaries for cancer genetic (CGx) testing, which analyzes DNA to assess future cancer risk but is not meant for diagnosing current cancer. Medicare only covers the procedure under strict conditions. The defendants and their co-conspirators accepted kickbacks for referring beneficiaries for tests that were ineligible for reimbursement. The scheme resulted in $17.3 million billed to Medicare, with Wexler and Bleignier personally pocketing $5.2 million.
While under investigation, Bleignier established a new clinical laboratory and enrolled it in Medicare using falsified ownership documents to hide his involvement. This scheme generated $3,012,156 in ineligible claims, with Bleignier and associates receiving $916,106.
Wexler pleaded guilty in April 2024 to conspiracy to commit health care fraud and wire fraud, while Bleignier pleaded guilty in November 2022 to conspiracy to defraud the U.S. and pay/receive kickbacks, and again in November 2024 to making false statements related to healthcare matters.
In addition to prison terms, both men were ordered to pay $1.2 million in forfeiture each and $5.2 million in restitution. Bleignier must also pay an additional $916,106 in forfeiture connected to the falsified laboratory ownership.
