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Former UConn football standout and Texas lab owner Keith J. Gray was sentenced Thursday for his role in an extensive genetic testing fraud scheme, the Justice Department announced Friday.
According to investigators, the cardiovascular testing scheme generated up to $328 million in fraudulent claims. Gray, who never appeared in a regular season NFL game, owns Axis Professional Labs and Kingdom Health Laboratory.
He was convicted of conspiracy to defraud the United States and of paying and receiving health care kickbacks, five counts of violating the anti-kickback statute. Gray also faces three counts of money laundering, a DOJ news release confirmed.
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Texas lab owner and former NFL player Keith J. Gray was convicted of conspiracy to defraud the United States and paying and receiving health care kickbacks. Gray faces five counts of violating the Anti-Kickback Act and three counts of money laundering. (Wesley Hitt/Getty Images)
Prosecutors said Gray knowingly billed Medicare for “medically unnecessary genetic tests designed to evaluate the risk of various cardiovascular diseases and conditions.” According to officials, Gray gave kickbacks in exchange for referrals of DNA samples and executed test orders authorizing the procedures.
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Marketers would seek out Medicare beneficiaries and “doctor hunt” to uncover the identity of beneficiaries’ primary care physicians. Prosecutors said that once a person’s identity was obtained, a doctor was believed to have been pressured to approve the tests.
Fabricated documents and invoices were used to try to hide payments that listed fees for “marketing hours.” Another aspect of the operation involved Gray allegedly mischaracterizing the payments as “software expenses” or labeling them as non-existent loans.
Keith Gray of the Carolina Panthers poses for his 2009 NFL headshot at photo day in Charlotte, North Carolina. (NFL Photos)
During the trial, prosecutors presented evidence, including text messages between Gray and a co-conspirator. The messages appeared to be enthusiastic exchanges between the two over the anticipation of the money they were getting from Medicare.
“$ent you should have it anytime if you don’t already. Get it?” Gray then responded by saying, “Sorry, I filled my bathtub with them. Yeah lol.”
Texas lab owner and former NFL player Keith J. Gray was convicted of conspiracy to defraud the United States and paying and receiving health care kickbacks. Gray faces up to 10 years in prison on each charge.
Axis and Kingdom billed Medicare for an estimated $328 million in fraudulent claims, while Medicare paid claims totaling approximately $54 million. A sentencing date for Gray was not immediately announced. He faces up to 10 years in prison for each charge.
Gray was a key contributor for the Huskies, starting every game in 2007. He signed with the Carolina Panthers as an undrafted free agent out of college.
