A federal jury in Dallas has convicted former NFL player Keith J. Gray in connection with a massive Medicare fraud scheme involving hundreds of millions of tax dollars in false claims.
Gray, a 39-year-old former University of Connecticut football star, later became the owner and operator of Axis Professional Labs LLC and Kingdom Health Laboratory LLC in Texas.
He was found guilty of orchestrating a scheme that billed Medicare for medically unnecessary genetic testing.
The Fraud Scheme
According to court documents and evidence presented at trial, Gray’s laboratories submitted claims for genetic tests purportedly designed to assess risks of cardiovascular diseases and related conditions.
Prosecutors established that Gray paid kickbacks to marketers who referred Medicare beneficiaries’ DNA samples, personal identifying information, including Medicare numbers, and signed test orders from medical providers.
The marketers allegedly used telemarketing campaigns to solicit beneficiaries and employed what prosecutors described as “doctor chase” tactics.
That involved identifying patients’ primary care physicians and pressuring them to approve testing orders based on screening criteria determined by non-medical personnel during phone calls, rather than by the physicians themselves.
Concealment Efforts
To disguise the kickbacks, prosecutors said Gray used sham contracts and invoices that described payments as compensation for “marketing” hours.
In reality, those payments were structured to match per-sample referral amounts.
Additional concealment tactics included labeling payments as compensation for “software” or as nonexistent loan agreements.
Trial evidence included text messages between Gray and a co-conspirator discussing proceeds from the operation.
In one exchange, the co-conspirator wrote:
“$ent, you should have it any minute if you don’t already. Get it?”
Gray responded:
“Sorry I was filling my bathtub with ones. Yes lol.”
Financial Impact
According to prosecutors, Axis and Kingdom submitted approximately $328 million in claims to Medicare that were described as false, fraudulent, and tainted by kickbacks.
Medicare ultimately paid out roughly $54 million on those claims.
Authorities also established that Gray laundered portions of the proceeds through luxury purchases, including:
• A Dodge Ram truck valued at more than $142,000
• A Mercedes-Benz SUV valued at more than $145,000
Potential Sentence
Gray faces a maximum penalty of 10 years in prison on each count.
His sentencing has not yet been scheduled.
Sports Background
Before entering the healthcare business, Gray was a standout football player at the University of Connecticut from 2004 to 2008.
As a redshirt senior in 2007, he served as team captain and started all 13 games at center for the Huskies.
After graduating, Gray signed with the Carolina Panthers as an undrafted free agent in 2009 but did not appear in a regular-season NFL game.
He later spent time on the Indianapolis Colts’ practice squad and had a brief stint in the United Football League before transitioning into the laboratory business.
The case underscores ongoing federal efforts to crack down on large-scale healthcare fraud schemes targeting taxpayer-funded programs like Medicare.
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