Genematrix Founder to Get New Sentence for Kickback Conspiracy

The founder of healthcare distributor Genematrix LLC lost his Fifth Circuit appeal Tuesday to undo a conviction for conspiracy to violate the Anti-Kickback Statute, but he will be resentenced.

The court vacated the 42-month sentence handed down by the trial court because his conduct related to Vantari Genetics LLC—a laboratory that performed pharmacogenetic tests—didn’t violate the law.

The government’s theory with respect to the alleged Vantari scheme was premised on a commission-based contract between the lab and Genematrix. The structure of the contract alone wasn’t sufficient to support a conviction under the AKS, and the government failed to show that ...