By Bemi Brooks 
Tesis Labs LLC, a Delaware limited liability company formed in 2019, operated genetic testing laboratories in Colorado and faced significant federal scrutiny following a 2024 indictment. Seven individuals with ownership or executive roles in Tesis Labs LLC and related entities were charged in connection with an alleged scheme to defraud Medicare and Colorado Medicaid of more than $40 million through claims for medically unnecessary genetic testing.
The case, brought by the U.S. Attorney’s Office for the District of Colorado, highlights ongoing federal enforcement priorities in health care fraud involving laboratory testing, kickbacks, and patient solicitation practices. This article provides factual information drawn from court records and official government announcements. It explains the background, legal issues, current status, and potential implications for affected parties. This article is for informational purposes only and does not constitute legal advice.
Background and Legal Context
Tesis Labs LLC, later known as Tesis Biosciences LLC, served as a parent company that owned and operated clinical laboratories engaged in genetic testing. These included Claro Scientific Laboratories, Inc., in Lafayette, Colorado, and 303 Diagnostics LLC in Aurora, Colorado. A separate entity, Tesis Labs of Arizona LLC, operated in Arizona. Court documents indicate the company acquired certain lab assets around January 2020.
Federal health care programs such as Medicare and state Medicaid programs reimburse clinical laboratories for covered diagnostic tests when those tests are medically necessary and ordered by qualified physicians in accordance with program rules. The Anti-Kickback Statute (42 U.S.C. § 1320a-7b) prohibits offering or paying any remuneration to induce referrals for services reimbursable by federal health care programs. Violations can also trigger liability under the criminal health care fraud statute (18 U.S.C. § 1347) and the False Claims Act when false claims are submitted.
The indictment alleges that executives and owners of Tesis Labs LLC participated in arrangements that allegedly violated these statutes by using marketers to generate patient referrals for genetic tests that were not ordered for legitimate diagnostic or treatment purposes.
Key Legal Issues Explained
At the center of the case are allegations of a kickback conspiracy. According to the U.S. Department of Justice, certain defendants allegedly paid bribes and kickbacks to marketing entities and call centers. These marketers allegedly targeted elderly Medicare beneficiaries, obtained physician signatures on order forms under questionable circumstances, and funneled patients to Tesis Labs LLC–operated facilities for genetic testing that was not medically necessary.
The indictment further alleges that defendants caused laboratories to submit claims to Medicare and Colorado Medicaid using altered diagnosis codes or orders that did not reflect actual patient needs. Prosecutors also charged a money-laundering conspiracy involving three of the defendants related to the alleged proceeds of the scheme.
These types of cases typically proceed through federal district court with an indictment returned by a grand jury, followed by arraignments, discovery, potential motions practice, and either plea negotiations or trial. The government must prove each element beyond a reasonable doubt in a criminal case. Civil False Claims Act cases may accompany or follow criminal actions, allowing the government to recover additional damages and penalties.
Latest Developments and Case Status
On September 24, 2024, a federal grand jury in the U.S. District Court for the District of Colorado returned an indictment charging seven individuals: Ronald King (51, then-CEO of Tesis Labs LLC), Victor Roiter (55, Vice President of Marketing), Tina Wellman (51, Chief Operating Officer), Adam Shorr (55, beneficial owner and business consultant), Robert O’Sullivan (55), Bradley Edson (66), and John Gautereaux (59). The defendants reside in multiple states including Maine, Florida, New York, California, and Arizona.
All seven defendants were charged with conspiracy to commit health care fraud and conspiracy to offer and pay illegal kickbacks. King, Roiter, and Wellman faced an additional charge of conspiracy to launder monetary instruments. The defendants made initial appearances in federal court in Denver in late August and early September 2024. As of the most recent public information available, the criminal case remains pending in the District of Colorado.
Separately, in June 2025, a civil lawsuit styled Xcellerant Fund I LLC et al. v. Tesis Biosciences LLC et al. was filed in the U.S. District Court for the District of Arizona. The case, assigned to Judge Douglas L. Rayes, alleges fraud and other claims and names Tesis Biosciences LLC, Tesis Labs of Arizona LLC, and several individual defendants including King, Roiter, and Shorr. Docket entries indicate service efforts and certain defaults as of early 2026, though the civil matter also continues.
No public announcements of guilty pleas, trial verdicts, or settlements in the criminal case have been issued by the Department of Justice as of May 2026.
Who Is Affected and Potential Impact
The alleged scheme primarily targeted elderly Medicare beneficiaries through call-center solicitations. Patients who underwent unnecessary testing may have received results of questionable clinical value and could face concerns regarding privacy of genetic information or unnecessary follow-up medical care.
Taxpayers and the Medicare and Medicaid programs bore the direct financial impact of the more than $40 million in allegedly fraudulent claims. Health care fraud of this nature increases program costs and can lead to stricter scrutiny of laboratory claims nationwide.
Laboratories, physicians, and marketing entities involved in genetic testing must remain vigilant about compliance with the Anti-Kickback Statute and documentation requirements for medical necessity. Businesses that acquired or interacted with Tesis Labs LLC or Tesis Biosciences LLC assets may also review contractual and regulatory exposures.
What This Means Going Forward
This indictment underscores the Department of Justice’s continued focus on laboratory fraud schemes involving genetic testing and kickbacks, an area that has seen multiple high-value enforcement actions in recent years. Federal regulators, including the Department of Health and Human Services Office of Inspector General, routinely investigate such matters through data analytics, whistleblower tips, and coordinated task forces.
Stakeholders in the clinical laboratory industry should monitor compliance programs, particularly around marketing arrangements, physician orders, and billing practices. Affected patients or providers with questions about testing performed through Tesis Labs LLC facilities may contact their physicians or the relevant payer for records.
Readers should watch for further court filings in both the criminal and civil matters. Any updates would typically appear through official Department of Justice announcements or court dockets.
Frequently Asked Questions
What is Tesis Labs LLC?
Tesis Labs LLC is a Delaware limited liability company that operated as a parent entity for genetic testing laboratories, including facilities in Colorado and Arizona. It later operated under the name Tesis Biosciences LLC.
What are the main allegations against individuals associated with Tesis Labs LLC?
Federal prosecutors allege that executives and owners conspired to pay kickbacks to marketers to generate referrals for medically unnecessary genetic tests, resulting in more than $40 million in claims paid by Medicare and Colorado Medicaid.
Who was indicted in the Tesis Labs LLC case?
The seven individuals named in the September 2024 indictment are Ronald King, Victor Roiter, Tina Wellman, Adam Shorr, Robert O’Sullivan, Bradley Edson, and John Gautereaux.
Is Tesis Labs LLC still operating?
Public information indicates the company rebranded and operated certain facilities after 2021. Current operational status should be verified directly with regulators or through official business records, as the criminal and civil proceedings may affect ongoing activities.
What laws are implicated in the Tesis Labs LLC indictment?
The charges involve conspiracy to commit health care fraud, conspiracy to violate the federal Anti-Kickback Statute, and, for certain defendants, money laundering.
What should patients or providers do if they were involved with testing through these laboratories?
Patients should consult their treating physicians regarding the clinical significance of any test results. Providers or billing entities may review records for compliance with Medicare and Medicaid rules. Questions about coverage or claims can be directed to the applicable payer.
Conclusion
The federal indictment of individuals associated with Tesis Labs LLC represents a significant enforcement action in the area of laboratory genetic testing fraud. The case illustrates the legal risks that arise when marketing arrangements, physician orders, and billing practices deviate from federal health care program requirements. As proceedings continue in the U.S. District Court for the District of Colorado and the parallel civil action in Arizona, the matter serves as a reminder of the importance of strict adherence to anti-kickback and fraud statutes.
Members of the public, health care providers, and laboratory operators are encouraged to stay informed through official government sources and to consult qualified legal counsel for advice specific to their circumstances. Ongoing developments in this and similar cases will continue to shape compliance expectations across the clinical laboratory sector.