A federal jury in Dallas has found Keith J. Gray, a former NFL player and lab owner, guilty of a massive fraud scheme involving cardiovascular genetic testing. This scheme was worth $328 million and revolved around charging Medicare for unnecessary tests.
Gray, who owned Axis Professional Labs and Kingdom Health Laboratory, paid marketers for referrals of Medicare patients’ DNA samples and personal information. He used these referrals to push forward unnecessary genetic tests. Sometimes, these marketers would contact patients’ physicians under false pretenses to get approval for tests that were not needed.
To hide the kickbacks he was giving, Gray created fake contracts and invoices. He labeled these as payments for “marketing” or even “software,” which didn’t really exist. Evidence presented during the trial included surprising text exchanges between Gray and his partners, showing their excitement over the scheme’s profits. At one point, Gray joked about filling his bathtub with cash.
Gray’s labs billed Medicare for around $328 million, collecting about $54 million before the fraud was uncovered. He then used some of this money to buy luxury items, including a $142,000 truck and a $145,000 Mercedes SUV.
The jury found Gray guilty of multiple counts, including conspiracy to defraud the U.S. and violating the Anti-Kickback Statute. He could face up to 10 years in prison for each charge. Sentencing will occur later, and a federal judge will decide his fate based on legal guidelines.
This case highlights a troubling trend in healthcare fraud, which has been escalating in recent years. According to reports by the U.S. Department of Health and Human Services, fraud schemes have led to over $45 billion in fraudulent billing since the inception of the Health Care Fraud Strike Force in 2007. Recent statistics show an increase in fraudulent claims, pushing agencies like the FBI and the Department of Health and Human Services to crack down harder on these illegal activities.
The implications of such fraud are serious; it not only wastes taxpayer money but also compromises the integrity of healthcare systems, affecting real patients who need legitimate care.
For more on healthcare fraud efforts, you can visit the U.S. Justice Department’s Health Care Fraud Unit.
