Two former laboratory sales executives are headed to federal prison for their roles in a health care kickback conspiracy that funneled millions of dollars through a web of shady hospital deals and disguised payments.
Stephen Kash, 51, of Winnie, Texas, was sentenced to 18 months in federal prison and ordered to forfeit over $779,000 in criminal proceeds. Courtney Love, 46, of Dallas, received 12 months and one day behind bars and must give up $217,000 in ill-gotten gains. Their sentences were handed down by U.S. District Judge Jeremy D. Kernodle on April 24.
The case stems from a broader scheme involving kickbacks to doctors who referred patients for expensive lab tests billed to government health programs like Medicare and Medicaid. The two rural hospitals at the center of the plot—Little River Healthcare in Rockdale and Stamford Memorial Hospital in Stamford—partnered with True Health Diagnostics (THD), a Frisco-based lab specializing in cardiovascular testing.
Here’s how it worked: THD would process blood tests, while the hospitals—who could bill at higher rates—submitted the claims to insurers. The hospitals then shared a slice of the revenue with marketers, who kicked back money to doctors who referred patients for testing. These kickbacks were disguised as “returns” from investment opportunities in so-called management services organizations (MSOs)—but prosecutors say it was just a way to bribe physicians.
In other words: doctors got paid under the table for sending lab work to THD, which helped execs and salespeople like Kash and Love boost their commissions and bonuses.
The pair were among eight people indicted in 2022 for conspiring to violate the Anti-Kickback Statute, which bars any form of payment in exchange for medical referrals involving federally funded programs. Kash was also charged separately for money laundering tied to the scheme.
“This was a kickback conspiracy disguised as business as usual, and it exploited taxpayer-funded health care programs for personal gain,” said Acting U.S. Attorney Abe McGlothin, Jr..
The investigation was led by the U.S. Department of Health and Human Services Office of Inspector General, with help from the Defense Criminal Investigative Service, U.S. Secret Service, and Department of Commerce.
The case was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, Lucas Machicek, and Robert Austin Wells.
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