Keith Gray, a former NFL player, has been convicted by a federal jury in Dallas for his role in a $328 million Medicare fraud scheme in Texas. The conviction was announced on February 20, 2026, by the U.S. Department of Justice.
Gray, 39, once played professional football and was briefly part of the Carolina Panthers in 2009. Before that, he played college football at the University of Connecticut, where he started all 13 games at center for the UConn Huskies in 2007. After his time with the Panthers, he also signed with the Indianapolis Colts’ practice squad.
According to federal authorities, Keith Gray later became the owner and operator of two clinical laboratories in Texas. These labs were named Axis Professional Labs LLC and Kingdom Health Laboratory LLC. Prosecutors said these businesses were used as part of a large-scale Medicare fraud scheme.
A federal jury found Keith Gray guilty after hearing evidence about how the scheme worked and how much money was involved.
How the $328 Million Medicare Fraud Scheme Worked
The case centers around billing Medicare for genetic tests that were not medically necessary. Prosecutors said Keith Gray and his companies submitted claims for genetic testing designed to evaluate the risk of cardiovascular diseases and other conditions. However, these tests were described as unnecessary.
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Authorities stated that Keith Gray offered and paid kickbacks to marketers. These marketers referred Medicare beneficiaries to his laboratories. In return, they received payments. The referrals included DNA samples, personal details, Medicare numbers, and signed test orders from medical providers.
With this information, the labs billed Medicare for genetic testing. Prosecutors said that through Axis Professional Labs LLC and Kingdom Health Laboratory LLC, Keith Gray billed Medicare approximately $328 million.
Out of that amount, Medicare paid around $54 million.
The scheme was described as a plan to defraud the United States by misusing the Medicare system. The charges included conspiracy to defraud the United States and to pay and receive health care kickbacks.
The jury also found Keith Gray guilty of five counts of violating the Anti-Kickback Statute. This law makes it illegal to pay or receive money in exchange for patient referrals in federally funded healthcare programs. In addition, he was convicted on three counts of money laundering.
Investigators said some of the money obtained from the fraud was used to buy expensive luxury vehicles. These included a Dodge Ram truck worth more than $142,000 and a Mercedes-Benz SUV valued at more than $145,000.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Medicaid Fraud Control Unit, and the Department of Veterans Affairs Office of Inspector General.
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Charges, Guilty Verdict, and Possible Prison Time
The federal jury in Dallas found Keith Gray guilty on multiple counts related to the Medicare fraud scheme. The charges included conspiracy, kickback violations, and money laundering.
Each count carries a maximum penalty of up to 10 years in prison. This means Keith Gray faces significant prison time. However, a federal district court judge will decide the final sentence. The judge will consider the U.S. Sentencing Guidelines and other statutory factors before announcing the punishment.
Keith Gray is scheduled to be sentenced at a later date.
The conviction marks the end of a major federal case involving one of the largest Medicare fraud schemes in Texas in recent years. Authorities described the case as involving hundreds of millions of dollars in fraudulent billing tied to genetic testing.
The verdict follows a detailed investigation and a federal trial in which prosecutors presented evidence of billing practices, kickback payments, and financial transactions connected to the laboratory businesses.
Keith Gray, who was born in Allen, Texas, and attended high school in Worcester, Massachusetts, now faces the legal consequences of the jury’s decision. Once known for his time in professional football, Keith Gray has now been found guilty in a case centered on healthcare fraud and misuse of federal funds.
The case highlights the serious penalties tied to Medicare fraud and violations of federal healthcare laws.