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Ex-NFL Star Keith Gray Faces Up to 10 Years in Prison in $328M Fraud Case

This article was originally published on Total Pro Sports.

Ex-NFL Star Keith Gray Faces Up to 10 Years in Prison in $328M Fraud Case
Keith Gray (Image Credits: X)

Former professional football player Keith J. Gray has been convicted in a sweeping $328 million Medicare fraud scheme and could face a decade or more behind bars once sentencing is finalized. The federal case, which exposed a massive healthcare scam involving fake genetic tests and illegal kickbacks, has shocked both the legal world and the NFL community, given Gray’s background as a collegiate star and brief NFL player.

Massive Medicare Fraud Scheme Uncovered

Last week, a federal jury in Dallas, Texas, found 39-year-old Keith Gray guilty on multiple charges related to a complex fraud conspiracy involving Medicare, the federal health insurance program for seniors and the disabled. Prosecutors revealed that the scheme involved billing Medicare for medically unnecessary genetic tests ostensibly to evaluate risk for cardiovascular conditions that were never warranted.

The Department of Justice detailed that Gray orchestrated the scheme through two companies he owned, Axis Professional Labs LLC and Kingdom Health Laboratory LLC, systematically billing Medicare for these tests and collecting more than $54 million in actual payouts from approximately $328 million in fraudulent claims.

As per TMZ, “In the end, the Jury convicted Gray 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. Gray faces 10 years in prison on each count—and will be sentenced at a later date.”

Gray’s NFL and Early Life Background

A native of Allen, Texas, Gray first gained attention as a standout football player at the University of Connecticut, where he was a team captain and offensive lineman. After college, he signed with the Carolina Panthers as an undrafted free agent in 2009 and later spent time on the Indianapolis Colts practice squad. His NFL tenure was brief, and he eventually transitioned into the healthcare business after football.

Financial Gains and Lavish Purchases

The government’s evidence showed that Gray netted roughly $54 million from the illegal Medicare billings. Prosecutors say he laundered part of that money through extravagant purchases, including:

  • A Dodge Ram truck valued at more than $142,000
  • A Mercedes-Benz SUV worth more than $145,000

Next Steps: Sentencing and Potential Penalties

Gray’s sentencing hearing has not yet been scheduled, but if the judge imposes maximum consecutive sentences, he faces decades of federal prison time, given the seriousness of the convictions. Federal guidelines also allow for fines, restitution to affected programs, and forfeiture of ill-gotten gains.

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