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Stephen Kash and Courtney Love Sentenced in $1M Health Care Kickback Scheme
TYLER, Texas – In a shocking case of corruption, two former laboratory sales executives were sentenced to federal prison for conspiring to violate the Anti-Kickback Statute, announced Acting U.S. Attorney Abe McGlothin, Jr. on April 24, 2025. Stephen Kash, 51, of Winnie, was sentenced to 18 months in federal prison and ordered to forfeit $779,773.70 in criminal proceeds. Courtney Love, 46, of Dallas, was sentenced to 12 months and one day in federal prison and ordered to forfeit $217,268.75 in criminal proceeds.
The sentences were imposed by U.S. District Judge Jeremy D. Kernodle. This case is a result of an investigation that exposed a massive kickback scheme in the Texas healthcare system. The scheme involved two rural Texas hospitals, Little River Healthcare (LRH) and Stamford Memorial Hospital, partnering with True Health Diagnostics (THD), a clinical laboratory based in Frisco, Texas, that specialized in advanced cardiovascular lipid testing.
The hospitals billed the tests to insurers as hospital outpatient services, with the hospitals charging insurers a much higher rate than THD could receive as a clinical laboratory. The hospitals utilized a network of marketers who operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas. In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals.
Stephen Kash was also indicted for conspiring to commit money laundering for his involvement in a conspiracy to launder the proceeds of the kickback conspiracy. This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Defense – Defense Criminal Investigative Service (DCIS) with assistance from the U.S. Secret Service and the U.S. Department of Commerce – Export Enforcement.
The U.S. Attorney’s Office, Eastern District of Texas, praised the work of the investigative agencies and praised the bravery of the whistleblowers who came forward to expose the scheme. The case highlights the need for vigilance in the healthcare industry to prevent corruption and ensure that patients receive quality care.
Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, Lucas Machicek, and Robert Austin Wells prosecuted the case. The sentencing of Stephen Kash and Courtney Love is a significant victory for justice and a testament to the commitment of the U.S. Attorney’s Office to root out corruption and hold those responsible accountable.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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