Federal Jury Convicts Former NFL Player Keith J. Gray for $328 Million Medicare Genetic Testing Fraud in Dallas Texas

A Dallas federal jury handed down a guilty verdict yesterday against Keith J. Gray, a 39-year-old McKinney, Texas resident, for orchestrating a massive $328 million cardiovascular genetic testing fraud.

Gray’s elaborate scheme bilked Medicare through medically unnecessary genetic tests, kickbacks, and falsified paperwork, exposing the vulnerability of health care programs to large-scale abuse.

The Scheme Behind the Millions

Court documents revealed that Gray controlled two clinical laboratories, Axis Professional Labs LLC and Kingdom Health Laboratory LLC, which became the vehicle for the fraud.

The labs billed Medicare for genetic tests that were never medically justified, designed to identify cardiovascular risks.

Gray paid kickbacks to marketers who collected Medicare beneficiaries’ personal information and DNA samples.

Those marketers also engaged in “doctor chasing,” contacting primary care physicians to pressure them into signing off on tests supposedly pre-approved during phone calls conducted by non-medical personnel.

To disguise these illegal payments, Gray created sham contracts and invoices labeled as “marketing,” “software,” or non-existent loans.

Text messages between Gray and co-conspirators painted a picture of gleeful celebration over the stolen funds. One message exchanged read:

“$ent, you should have it any minute if you don’t already. Get it?”
Gray replied: “Sorry I was filling my bathtub with ones. Yes lol.”

Billions in Billing and Lavish Purchases

Axis and Kingdom billed Medicare approximately $328 million.

Medicare ultimately paid around $54 million before the fraud was uncovered.

Gray used portions of the proceeds to purchase luxury vehicles, including a $142,000 Dodge Ram and a $145,000 Mercedes-Benz SUV, highlighting the personal gain involved in the scheme.

Charges and Conviction

The jury found Gray guilty on multiple counts, including:

• Conspiracy to defraud the United States

• Paying and receiving health care kickbacks

• Five counts of violating the Anti-Kickback Statute

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• Three counts of money laundering

He faces a maximum of 10 years in prison on each count, though the final sentence will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

Gray’s sentencing date has yet to be announced.

Agencies Involved in Investigation

The case was the result of a multi-agency investigation involving:

• FBI Dallas Field Office

• HHS Office of Inspector General (HHS-OIG) Dallas Region

• Texas Medicaid Fraud Control Unit (MFCU)

• Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office

Assistant Attorney General A. Tysen Duva and Special Agents in charge from each agency announced the conviction.

Trial attorneys Ethan Womble and Adam Tisdall of the Criminal Division’s Fraud Section led the prosecution.

Context: Health Care Fraud Strike Force

Gray’s case is part of a broader effort by the Department of Justice to combat health care fraud.

Since 2007, the Health Care Fraud Strike Force Program has charged more than 6,200 defendants who collectively billed federal programs and private insurers over $45 billion.

The program works closely with Centers for Medicare & Medicaid Services and the HHS-OIG to ensure accountability for fraudulent providers nationwide.

What’s Next?

Gray’s sentencing will determine whether he faces the full brunt of the law, including potential lengthy prison time.

Meanwhile, regulators and investigators continue to monitor similar schemes, emphasizing prevention and rapid response.

Businesses, providers, and patients are being reminded to remain vigilant against unsolicited solicitations for genetic or other diagnostic testing.

The case also signals to health care providers that kickbacks and fraudulent billing can carry severe consequences, with multi-agency coordination ready to trace financial and operational irregularities.

Summary

Keith J. Gray, a former NFL player and Texas laboratory owner, was convicted by a federal jury in Dallas for orchestrating a $328 million Medicare genetic testing fraud.

Gray used his two labs, Axis Professional Labs and Kingdom Health Laboratory, to bill for medically unnecessary tests, offering kickbacks to marketers and engaging in “doctor chasing” to obtain fraudulent test authorizations.

He laundered part of the fraud proceeds through luxury vehicle purchases.

Gray was convicted on conspiracy, health care kickback violations, and money laundering charges.

He faces up to 10 years in prison per count, with sentencing pending.

The case highlights ongoing federal efforts through the Health Care Fraud Strike Force to combat massive, coordinated fraud schemes targeting Medicare.