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Keith J. Gray, a former University of Connecticut football star and Texas lab owner, was convicted Thursday for his role in a sweeping 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 has never appeared in an NFL regular-season game, owns Axis Professional Labs and Kingdom Health Laboratory.
He was convicted of conspiracy to defraud the United States and paying and receiving health care kickbacks, five counts of violating the anti-kickback statute. Gray also faces three counts of money laundering, a Department of Justice news release confirmed.
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Keith J. Gray, a Texas laboratory owner and former NFL player, 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 statute and three counts of money laundering. (Wesley Hitt/Getty Images)
Prosecutors said Gray knowingly billed Medicare for “medically unnecessary genetic testing designed to evaluate the risk of various cardiovascular diseases and conditions.” According to officials, Gray provided bribes in exchange for DNA sample referrals and executed test orders authorizing the procedures.
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Marketers would seek out Medicare beneficiaries and conduct a “doctor chase” to discover the identity of the beneficiaries’ primary care physicians. Prosecutors said that once an individual’s identity was obtained, a doctor was believed to be pressured to approve the tests.
Forged documents and invoices were used to attempt to conceal payments that listed charges for “marketing” hours. Another aspect of the operation involved Gray allegedly mischaracterizing payments as “software” expenses or labeling them as non-existent loans.
Keith Gray of the Carolina Panthers poses for his 2009 NFL photo 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 anticipating the money they would get from Medicare.
“$ent, you should have it any time if you don’t already have it. Do you understand?” Gray then responded by saying, “Sorry, I was just filling my bathtub with some. Yeah, lol.”
Keith J. Gray, a Texas laboratory owner and former NFL player, 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 count.
Axis and Kingdom billed Medicare an estimated $328 million for false 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 on 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 after college.
