Former NFL lineman Keith Gray was convicted by a federal jury in Dallas for orchestrating a Medicare fraud scheme that billed about $328 million for medically unnecessary genetic tests. Prosecutors say Gray ran two labs, paid kickbacks for referrals of Medicare beneficiaries’ DNA and test orders, and personally received roughly $54 million. He was found guilty on conspiracy, anti-kickback and money-laundering charges; sentencing is pending and each count carries up to 10 years in prison. Authorities also allege some proceeds were laundered to purchase luxury vehicles.
Former NFL Lineman Keith Gray Convicted In $328M Medicare Genetic-Testing Fraud
Keith GrayNFL Photos/Getty
A federal jury in Dallas has convicted former NFL offensive lineman and University of Connecticut standout Keith Gray for his role in a large Medicare fraud scheme that billed the program about $328 million, the U.S. Department of Justice said.
Case and Conviction: The 39-year-old Gray, of McKinney, Texas, was found guilty on multiple counts, including conspiracy to defraud the United States, conspiracy to pay and receive health-care kickbacks, five counts of violating the Anti-Kickback Statute, and three counts of money laundering. Prosecutors say the convictions stem from a scheme that marketed and submitted claims for medically unnecessary genetic tests purportedly related to cardiovascular risk.
How the Scheme Worked: According to prosecutors, Gray operated two clinical laboratories — Axis Professional Labs LLC and Kingdom Health Laboratory LLC — that billed Medicare for genetic tests. He allegedly paid kickbacks to marketers to obtain referrals of Medicare beneficiaries' DNA samples, personally identifiable information (including Medicare numbers), and signed test orders from medical providers. The Justice Department says the firms billed roughly $328 million to Medicare and that Gray personally received about $54 million in proceeds.
Keith GrayAP Photo/Chuck Burton
Alleged Money Laundering And Purchases: Authorities also say Gray laundered portions of the proceeds and used the funds to buy high-end vehicles, including a Dodge Ram truck valued at more than $142,000 and a Mercedes-Benz SUV worth more than $145,000.
Football And Career Background: Gray played college football at UConn, where he started all 13 games at center for the Huskies in 2007. After going undrafted, he had a brief NFL stint with the Carolina Panthers in 2009 and spent time on the Indianapolis Colts practice squad. Outside of football, court records and interviews show Gray moved into health-care management and was identified in a 2021 industry podcast as CEO of Dallas-based Parameno Health.
“When I went into the math building, the head of the actuarial program saw me with my football sweats and he said, ‘Hey, what are you doing in here?’ … ‘Actuaries have almost a 0% unemployment rate. They make really good money. So when you’re done playing football, you can still make good money.’ All right, let’s do this.”
Next Steps: Sentencing has not yet been scheduled. Each count carries a statutory maximum penalty of up to 10 years in prison, meaning combined sentences on multiple counts could result in decades behind bars if the maximums are imposed.
Source: U.S. Department of Justice press release and trial records.
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