Texas lab owner convicted of $328M genetic testing fraud scheme
Judge gavel, scales of justice and law books in court. (Brian A. Jackson/South Florida Sun Sentinel)
DALLAS - A Texas laboratory owner and former NFL player was convicted in a $328 million cardiovascular testing fraud scheme.
What we know:
Keith J. Gray, owner of Axis Professional Labs and Kingdom Health Laboratory, was convicted of conspiracy to defraud the United States and to pay and receive health care kickbacks, five counts of violating the anti-kickback statute and three counts of money laundering.
Prosecutors said Gray, from McKinney, billed Medicare for unnecessary genetic tests designed to evaluate the risk of various cardiovascular diseases and conditions. Gray offered and paid kickbacks to marketers in exchange for referrals of DNA samples and signed test orders authorizing the tests.
The marketers would target Medicare beneficiaries and "doctor chase" to find the identity of the beneficiaries' primary care physicians to pressure them into approving the tests, prosecutors said.
The payments were hidden using fake contracts and invoices that charged for "marketing" hours. Gray also tried to hide the payments by referring to them as being for "software" and non-existent loans.
Medicare billed for $328 million in false claims
Axis and Kingdom billed Medicare around $328 million for false claims. Medicare paid out approximately $54 million in claims.
Prosecutors said part of the money was laundered by Gray to buy a Dodge Ram truck and a Mercedes-Benz SUV.
What we don't know:
Gray's sentencing will be held at a later date. He faces up to 10 years for each count.
The Source: Information in this article comes from the U.S. Department of Justice.