Particle.news

Dallas Jury Convicts Keith J. Gray in $328 Million Medicare Genetic-Testing Fraud

The verdict caps a case built on evidence of kickbacks, sham contracts, luxury-vehicle purchases.

Overview

  • A federal jury in Dallas found Gray guilty of conspiracy, five Anti‑Kickback Statute counts, and three money‑laundering counts.
  • Prosecutors said Gray’s labs, Axis Professional Labs and Kingdom Health Laboratory, submitted about $328 million in cardiovascular genetic‑testing claims and received roughly $54 million.
  • Marketers recruited Medicare beneficiaries through telemarketing and “doctor chase” tactics to secure physician signatures for tests deemed medically unnecessary.
  • Payments to marketers were concealed with sham “marketing” contracts and invoices and were mislabeled as software fees or nonexistent loans.
  • Investigators said Gray used proceeds to buy high‑end vehicles, and a probe by the DOJ Fraud Section with the FBI, HHS‑OIG, Texas MFCU and VA‑OIG led to the conviction; sentencing is pending with up to 10 years per count.