Ex-NFL Player and Lab Owner Convicted in $328M Genetic Fraud Case
A Texas laboratory owner and former NFL player was convicted for his involvement in a substantial genetic fraud scheme amounting to $328 million. The case revolved around Keith J. Gray, 39, from McKinney, Texas, who was charged with orchestrating a Medicare fraud operation that involved the billing of medically unnecessary genetic tests related to cardiovascular diseases.
Details of the Fraud Scheme
Gray operated two clinical laboratories, Axis Professional Labs LLC and Kingdom Health Laboratory LLC. He engaged in illegal activities by offering kickbacks to marketers for the referral of DNA samples from Medicare beneficiaries.
- Kickbacks were paid for providing personally identifiable information, including Medicare numbers.
- Gray’s marketers used misleading methods to solicit approvals for genetic testing from primary care physicians, often without proper consultation.
- Payments were disguised through sham contracts described as “marketing” hours and fraudulent software expenses.
Financial Impact
The fraudulent claims to Medicare amounted to approximately $328 million. In return, Medicare disbursed about $54 million. Gray misappropriated these proceeds to purchase luxury vehicles, including:
- A Dodge Ram truck valued at over $142,000
- A Mercedes Benz SUV costs exceeding $145,000
Conviction and Legal Consequences
The jury found Gray guilty of various charges, including conspiracy to defraud the United States and multiple counts of violating the Anti-Kickback Statute, along with money laundering. He faces a maximum of 10 years in prison for each charge, with sentencing set for a later date.
Investigation and Prosecution
The investigation was a concerted effort by several agencies, including:
- FBI Dallas Field Office
- U.S. Department of Health and Human Services Office of Inspector General
- Texas Attorney General’s Medicaid Fraud Control Unit
- Department of Veteran’s Affairs Office of Inspector General
Trial Attorneys Ethan Womble and Adam Tisdall have taken the lead in prosecuting the case. The Health Care Fraud Strike Force Program, initiated in March 2007, has been instrumental in addressing such fraud, having charged over 6,200 defendants linked to fraud cases totaling more than $45 billion.
Implications for Healthcare Fraud
The Centers for Medicare & Medicaid Services, together with the Department of Health and Human Services, are enhancing efforts to deter healthcare fraud. This case underscores the ongoing challenges and necessary vigilance in safeguarding healthcare integrity.
