Jury convicts ex-UConn football star, Texas lab owner in fraud scheme
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Former UConn football star and Texas laboratory owner Keith J. Gray was sentenced Thursday for his role in a wide-ranging genetic testing fraud scheme, the Justice Department announced Friday.
The cardiovascular testing scheme raised up to $328 million in fraudulent claims, according to researchers. Gray, who has 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 five counts of violating the anti-kickback law by giving and receiving kickbacks from health care services. Gray also faces three money laundering charges, the Department of Justice confirmed in a press release.
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Texas laboratory owner and former NFL player Keith J. Gray was convicted of conspiracy to defraud the United States and receive kickbacks from health care services. Gray faces five counts of violating the anti-kickback law and three counts of money laundering. (Wesley Hitt/Getty Images)
Prosecutors said Gray knowingly billed Medicare for “medically unnecessary genetic tests designed to assess the risk of various cardiovascular diseases and conditions.” According to authorities, Gray provided kickbacks in exchange for sending DNA samples and executed testing orders that authorized the procedures.
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Marketers would call Medicare beneficiaries and conduct “doctor tracking” to reveal the identity of the beneficiaries’ primary care physicians. Once a person’s identity was obtained, the doctor was believed to have been pressured to approve the tests, prosecutors said.
Forged documents and invoices were used to conceal payments listing charges for “marketing” hours. Another aspect of the operation was that Gray allegedly mischaracterized payments as “software” expenses or labeled 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 that included text messages between Gray and an accomplice. The messages appeared to be enthusiastic exchanges between the two about the prospect of money they would make from Medicare.
“$ent, if you haven’t got it yet, you should get it any minute. Got it?” Gray then responded by saying, “I’m sorry I filled the bathtub with these. Yeah hahaha.”
Texas laboratory owner and former NFL player Keith J. Gray was convicted of conspiracy to defraud the United States and receive kickbacks from health care services. Gray faces up to 10 years in prison on each charge.
Axis and Kingdom billed Medicare an estimated $328 million for false claims, while Medicare paid a total of approximately $54 million in damages. Gray’s sentencing date has not yet been announced. He faces up to 10 years in prison on each charge.
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Gray was a key contributor for the Huskies, starting every game in 2007. After college, he signed with the Carolina Panthers as an undrafted free agent.
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