By Prime Law Hub 
The legitimacy of Tesis Labs LLC is highly questionable due to serious federal criminal charges and civil litigation involving allegations of widespread health care fraud. As of January 2026, the company—formerly a provider of genetic testing and precision medicine services—faces unresolved indictments from 2024 accusing executives of defrauding Medicare and Medicaid of over $40 million through kickbacks, unnecessary testing, and false billing practices.
Key Points
- Serious Allegations, Not Convictions: Executives, including the former CEO, were indicted in 2024 on charges related to health care fraud, conspiracy, and violations of the Anti-Kickback Statute. These remain allegations; defendants are presumed innocent until proven guilty in court.
- Company Status: Tesis Labs LLC (also known as Tesis Biosciences) appears inactive. Its primary websites are either inaccessible or repurposed to unrelated content, suggesting operations have ceased following the legal scrutiny.
- Buyer Caution Advised: Individuals or providers considering genetic testing services should avoid any dealings linked to this entity and verify providers through official regulatory channels (e.g., CMS, state licensing boards). Taxpayers and patients may have been indirectly affected by alleged fraudulent billing.
- Broader Context: Genetic testing fraud cases are not uncommon in the industry, highlighting risks in direct-to-consumer or physician-referred models.
Overview of Concerns: Tesis Labs LLC operated as a clinical laboratory offering targeted genetic sequencing, pharmacogenomics (PGx), and cancer genetic (CGx) testing. It positioned itself as a partner for physicians and health care providers. However, federal authorities allege the company participated in schemes that exploited Medicare and Medicaid reimbursement for unnecessary tests.
Practical Recommendations for Buyers
- Confirm any laboratory’s CLIA certification and Medicare enrollment status via official government databases.
- Be wary of unsolicited genetic testing offers or high-pressure marketing.
- Consult health care providers or legal counsel before proceeding with any testing. This article is for informational purposes only and does not constitute legal advice.
Tesis Labs LLC emerged in the late 2010s as a player in the rapidly expanding field of genetic testing and precision medicine. Incorporated in Delaware around October 2019, the company—doing business as Tesis Biosciences after a rebranding—focused on targeted genetic sequencing services, including pharmacogenomics (PGx), cancer genetic (CGx), pulmonary, urology, wound care, anesthesia, neurology, and cardiac panels. It acquired existing Medicare-enrolled laboratories, such as Claro Scientific Laboratories in January 2020 and 303 Diagnostics in December 2020, to expand billing capabilities.
In 2021, Tesis Labs secured $20 million in growth equity financing at a post-money valuation of $520 million, signaling investor confidence in its clinical capacity expansion. The company maintained multiple locations and marketed its services to health care providers as a bridge between patients and complex laboratory testing. Public-facing websites like tesisbiosciences.com and tesiscolorado.com described advanced R&D capabilities and proprietary mapping processes for diagnostic accuracy.
However, the company’s trajectory shifted dramatically due to federal scrutiny. In September 2024, the U.S. Attorney’s Office for the District of Colorado announced a federal grand jury indictment charging seven individuals—including Ronald King (former CEO of Tesis Labs LLC), Victor Roiter, Tina Wellman, Adam Shorr, and others—with conspiracy to commit health care fraud, wire fraud, and related offenses. The indictment alleged a scheme that defrauded Medicare and Colorado Medicaid of more than $40 million through fraudulent claims for genetic tests.
Core Allegations in the Criminal Case
The charges centered on violations of the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b) and the False Claims Act (31 U.S.C. §§ 3729–3733). Prosecutors alleged that defendants conspired to solicit genetic test orders from beneficiaries without legitimate medical necessity, paid illegal kickbacks to marketing companies for patient referrals, and submitted false claims to Medicare and Medicaid. The scheme reportedly involved bypassing physician evaluations, pressuring doctors to authorize tests, and manipulating billing codes to maximize reimbursements.
Tesis Labs LLC served as a parent entity overseeing laboratories that submitted the allegedly fraudulent claims. The indictment described acquisitions of existing labs as enabling access to established Medicare billing privileges. Initial court proceedings included summonses and appearances in 2024, but no public reports of trials, pleas, or resolutions appear as of January 2026.
Related Civil Litigation
In June 2025, Xcellerant Fund I LLC and related entities filed a civil complaint in the U.S. District Court for the District of Arizona (Case No. 2:25-cv-02167) against Tesis Biosciences LLC and multiple defendants. The suit alleges securities fraud, civil RICO violations, and misuse of investor funds—totaling around $32 million—in connection with the same alleged fraudulent billing practices targeting Medicare for unnecessary tests.
The civil case remains in early stages with no reported resolutions. Earlier disputes include a 2023 judgment against Tesis Labs of Arizona LLC in a payroll services matter.
Timeline of Key Events
| Date | Event | Source/Reference |
|---|---|---|
| October 2019 | Tesis Labs LLC formed in Delaware | Court filings |
| 2020–2021 | Acquisitions of Claro Scientific and 303 Diagnostics; $20M funding | Press releases |
| September 2024 | Federal indictment unsealed; 7 executives charged | DOJ press release |
| June 2025 | Civil fraud suit filed by Xcellerant Fund in Arizona | Court dockets |
| January 2026 | No reported resolutions; websites inactive or repurposed | Current checks |
Who Is Affected and Potential Impacts
- Patients: Those who underwent testing through Tesis-affiliated labs may have had claims submitted without proper consent or necessity, potentially affecting medical records or leading to identity-related issues in fraud schemes.
- Health Care Providers: Physicians who authorized tests could face scrutiny if referrals were influenced by improper incentives.
- Taxpayers and Government Programs: Alleged losses exceed $40 million, straining Medicare and Medicaid resources.
- Investors: Civil claims suggest potential losses from misrepresented business practices.
Possible outcomes include convictions leading to restitution, fines, or exclusion from federal health programs under 42 U.S.C. § 1320a-7. The genetic testing industry has seen similar enforcement actions, underscoring regulatory risks in high-reimbursement areas.
What This Means Going Forward
The Tesis Labs case exemplifies ongoing federal efforts to combat health care fraud in emerging fields like genetic testing. The Department of Justice and HHS Office of Inspector General prioritize schemes involving unnecessary tests and kickbacks. Readers should monitor the criminal docket (U.S. District Court for Colorado, Case No. 24-cr-00251) and civil proceedings for developments.
For those seeking genetic testing, prioritize CLIA-certified, transparent providers with strong compliance programs. Industry-wide, expect continued scrutiny of direct marketing models.
Frequently Asked Questions
What charges were filed against Tesis Labs executives?
Seven individuals were indicted in 2024 for conspiracy to commit health care fraud, wire fraud, and related offenses involving over $40 million in alleged false Medicare/Medicaid claims.
Is Tesis Labs LLC still operating?
Public indicators suggest no. Websites are inaccessible or repurposed, and no recent operational activity is reported.
Are defendants presumed innocent?
Yes. All charges are allegations; U.S. law presumes innocence until proven guilty beyond a reasonable doubt.
Should consumers avoid genetic testing altogether?
No, but verify providers through CMS or state regulators and ensure medical necessity.
What laws were allegedly violated?
Primarily the Anti-Kickback Statute and False Claims Act, which prohibit improper incentives and false reimbursement claims.
Conclusion
The allegations against Tesis Labs LLC represent a significant enforcement action in the genetic testing sector. While the legal process continues, the case underscores the importance of compliance in health care billing. Stay informed through official sources, and consult professionals for personalized guidance.
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