Keith J. Gray Sentenced for Genetic Testing Fraud

The Justice Department revealed on Friday that Keith J. Gray, a former college football player who owned a lab in Texas, was sentenced for his involvement in a significant genetic testing fraud operation.

Investigations showed that a cardiovascular testing program resulted in fraudulent claims totaling around $328 million. Gray, who has never stepped onto an NFL field during regular season play, ran Axis Professional Labs and Kingdom Health Laboratories.

He was found guilty of conspiracy to defraud the United States, along with paying and receiving kickbacks for medical services, and he faced five counts of violating the Anti-Kickback Act. Additionally, he stands accused of three counts of money laundering, as confirmed by the Justice Department.

According to prosecutors, Gray intentionally billed Medicare for unnecessary genetic tests aimed at assessing risks for various cardiovascular diseases. Allegations suggest that he provided kickbacks in exchange for DNA samples, along with issuing testing orders that facilitated these procedures.

The operation involved “physician tracking” to identify Medicare beneficiaries and their primary care doctors. It seems there was pressure applied on doctors to authorize the tests once the patients’ identities were recognized.

To hide payments, forged documents and invoices labeled fees as “marketing” expenses. Moreover, Gray reportedly mislabeled payments as “software” costs or classified them as loans that did not exist.

Diving into trial evidence, prosecutors shared messages exchanged between Gray and his co-conspirators, which reflected a somewhat heated discussion about Medicare payments. One message read, “If you don’t have it yet, you should be able to get it soon. Do you get it?” Gray’s casual response was, “Sorry, I was filling up the bathtub. That’s right, lol.”

The Axis Professional Labs and Kingdom Health operations submitted about $328 million in false claims to Medicare, which paid out approximately $54 million of that amount. While a sentencing date for Gray is still pending, he could be facing as much as 10 years in prison for each charge.

Gray was a key player for the Huskies in college, starting every game in 2007. After college, he signed as an undrafted free agent with the Carolina Panthers.