#United States #Boston #Whistleblower #Genexe #Immerge

A Landmark Settlement in Genetic Testing Fraud

On April 23, 2025, the Whistleblower Law Collaborative LLC announced a significant resolution to a False Claims Act (FCA) case, achieving a $6 million settlement related to allegations of genetic testing fraud. The settlement concerns Genexe LLC, operating under the name Genexe Health, along with its parent company Immerge, Inc., and two individual owners, Jason Green and Jason Gross. This case is a pivotal illustration of the collective effort of whistleblowers and government prosecutors in tackling healthcare fraud.

The Fraud Allegations

The U.S. government launched an investigation after complaints were filed in 2018 and 2019 by whistleblowers, including clients of the Whistleblower Law Collaborative. The allegations illuminated a troubling scheme where Genexe and Immerge were purportedly involved in submitting false claims to Medicare. Specifically, the accusations centered on Clinical Genomic (CGx) and Pharmacogenomic (PGx) tests that were not justified as medically necessary and were procured through kickbacks to a network of independent contractors, medical labs, and telemedicine healthcare providers.

Medicare, as a federal health program, does not fund clinical tests that are deemed unnecessary or sourced through unethical practices. The harm inflicted by these fraudulent activities was not just financial but also deeply affected vulnerable patients subject to unnecessary testing and treatment.

Holding Individuals Accountable

A noteworthy aspect of this settlement is the direct accountability assigned to the individual owners involved in these fraudulent activities. Jason Green and Jason Gross, who served as CEO and COO respectively, will pay a portion of the settlement personally, which sends a clear message about corporate accountability in healthcare fraud. Their close involvement in these operations meant they had both the control and financial stake in the fraudulent claims made by their companies.

Government's Stance Against Healthcare Fraud

Government representatives emphasized the importance of addressing genetic testing fraud in their announcement. U.S. Attorney David Metcalf highlighted that such fraud exploits patients' fears and squanders taxpayer resources by endorsing unneeded medical procedures. The government's ongoing commitment to combatting fraud schemes like this is critical to preserving the integrity of federal healthcare programs. Maureen Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, further urged medical professionals to advocate for genuine patient care over misguided personal gains.

Acknowledgement of Whistleblower Contributions

The Whistleblower Law Collaborative commended the courage displayed by their clients, who played a vital role in bringing this fraud scheme to light. Partner Bruce C. Judge remarked on the significant impact of the whistleblowers whose actions facilitated the extensive investigation that led to the settlement, praising their resolve in illuminating a scheme that targeted elderly patients and cost taxpayers greatly.

Additionally, this case marks the third resolution of genetic testing fraud led by clients of the Whistleblower Law Collaborative since they began addressing these concerns in 2018. The prevailing theme in these cases supports the assertion that without whistleblowers' bravery, such malicious activities might go unchecked.

Conclusion

The resolution of this genetic testing fraud case serves as an important reminder of the imperative for ethical practices in the healthcare sector. It illustrates the vital role of whistleblowers and legal frameworks in safeguarding patient welfare and taxpayer dollars. The continued vigilance of the government, alongside proactive whistleblower assistance, paves the way for a safer and more accountable healthcare environment, reinforcing the necessity for ongoing education and regulation within the genetic testing domain.