Coronado Man Convicted of Federal Violations in Health Care Kickback Scheme

A Coronado, California, man has been found guilty of federal violations related to a health care kickback scheme. Vincent Marchetti, Jr., 57, was found guilty by a jury following a month-long trial before U.S. District Judge Robert W. Schroeder, III.

According to information presented in court, Marchetti conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests.  Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs.  The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California.  More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.

In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy.  A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, 46, of Scottsdale, Arizona; Nicolas Arroyo, 40, of Tempe, Arizona; Vincent Marchetti, Jr.; William Flowers, 56, of Houston; Steven Donofrio; James J. Walker, Jr. a/k/a Jimmy Walker, 47, of Frisco; Timothy Armstrong, 64, of Frisco; Virginia Blake Herrin, 56, of Frisco; Patrick Ridgeway, 52, of Jackson, Mississippi; Chismere Mallard, 41, of McAllen; Dr. Ray W. Ng; and Ashley Kretzschmar, 36, of Aledo; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.

Philip Lamb, Nicolas Arroyo, Jimmy Walker, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar pleaded guilty prior to trial.

Kimberly Willette, 59, of Friendswood, and Edwin Chad Isbell, 48, of McKinney, also pleaded guilty to related charges.