A former NFL player who owned two clinical laboratories in Texas has been convicted for his central role in a massive $328 million Medicare fraud scheme, according to an announcement from the Department of Justice. The case highlights significant vulnerabilities in the healthcare billing system and the audacious lengths to which some individuals will go to exploit it for personal gain.
Federal Jury Delivers Guilty Verdict in Dallas Court
A federal jury in Dallas delivered a decisive verdict, finding Keith Gray guilty on multiple serious charges. The 39-year-old was convicted of conspiracy to defraud the United States and to pay and receive healthcare kickbacks. Additionally, the jury found him guilty on five separate counts of violating the Anti-Kickback Statute and three counts of money laundering. Gray now faces a potential maximum sentence of up to 10 years in federal prison for each count, with his formal sentencing scheduled to occur at a later date determined by the court.
Orchestrating a Multi-Million Dollar Genetic Testing Scam
According to the detailed Department of Justice press release, Gray masterminded an elaborate and fraudulent scheme designed to bill Medicare for medically unnecessary genetic tests. These tests were purportedly intended to evaluate the risk of various cardiovascular diseases and conditions, but prosecutors asserted they served no legitimate medical purpose for the beneficiaries involved.
The scheme operated by offering illicit kickbacks to marketers in exchange for their referral of Medicare beneficiaries' DNA samples, personally identifiable information—including sensitive Medicare identification numbers—and signed test orders from medical providers. These orders authorized the genetic tests despite their lack of medical necessity, forming the backbone of the fraudulent billing operation.
Lavish Spending and Money Laundering Revealed
In total, Gray's laboratories submitted fraudulent bills amounting to a staggering $328 million to Medicare. From this colossal sum, Gray personally profited approximately $54 million. Prosecutors presented evidence detailing how Gray laundered these illicit profits through extravagant personal purchases. Notably, he acquired a $142,000 Dodge Ram pickup truck and a Mercedes-Benz SUV valued at around $145,000, using the fraudulently obtained funds.
From College Football Star to Fraudster
Keith Gray's background adds a layer of notoriety to the case. A mathematics and actuarial science major at the University of Connecticut, Gray was a standout offensive lineman for the Huskies football team. His athletic prowess led him to sign with the Carolina Panthers as an undrafted free agent, though online records indicate he was ultimately waived without ever playing in a regular-season NFL game, marking an unceremonious end to his professional football aspirations.
Damning Electronic Evidence Seals Conviction
The jury trial was significantly influenced by compelling electronic evidence, primarily in the form of text messages exchanged between Gray and his co-conspirator. These messages provided a candid and damning glimpse into their mindset. According to the Department of Justice, Gray became 'giddy over the amount of money they were making from Medicare.'
In one particularly revealing exchange presented at trial, Gray's partner wrote: '$ent, you should have it any minute if you don't already. Get it?' Gray's response was chilling in its nonchalance: 'Sorry I was filling my bathtub with ones. Yes lol.' This exchange underscored the brazen attitude with which the fraud was conducted.
The conviction of Keith Gray serves as a stark warning and a significant victory for federal prosecutors in their ongoing battle against complex healthcare fraud. It underscores the critical importance of vigilance and robust enforcement to protect vital public funds like those allocated to Medicare.
