A Raleigh man, James Shuford Price, III, 59, has pleaded guilty in federal court to orchestrating a scheme involving illegal kickbacks for patient referrals to his California-based lab, Golden Star Labs (GSL), which resulted in more than $60 million in fraudulent claims to federal and state healthcare programs, and to filing a false federal tax return. Price faces a statutory maximum of 13 years’ imprisonment, a $500,000 fine, and three years of supervised release at sentencing, along with restitution to Medi-Cal, Medicare, and the IRS.
Between August 2023 and June 2025, Price's GSL submitted over $85 million in false claims to Medi-Cal and more than $11 million to Medicare for multi-panel testing for SARS-CoV-2, Influenza A and B, and Respiratory Syncytial Virus. These claims, based on fraudulent test samples, led to Medi-Cal and Medicare disbursing over $60 million to GSL. The scheme involved GSL unlawfully inducing "collectors" to supply samples by compensating them based on volume, paying over $17 million to these individuals between August 2023 and January 2025.
The collectors provided bulk quantities of bogus test samples, often obtained through widespread identity theft, which GSL then billed to the healthcare programs. Price attempted to conceal the illicit payments by directing GSL to enter into fake contracts with collectors, falsely specifying fixed fees and prohibiting volume-based payments, while the kickback scheme continued. During the investigation, the FBI, in partnership with the U.S. Attorney’s Office, seized more than $6 million in assets linked to the fraud.
U.S. Attorney Ellis Boyle emphasized the commitment to prosecuting such crimes, saying, "Stealing taxpayer dollars that should be used to help legitimate beneficiaries is lowdown, dirty pool. We have a message to fraudsters who steal federal dollars: we will catch, prosecute, and imprison you. Cheaters. Never. Win." FBI Special Agent in Charge Reid Davis added that the guilty plea "demonstrates the FBI’s unwavering commitment to protecting federal healthcare programs and the taxpayers who fund them."
Price also pleaded guilty to filing a false federal income tax return for 2022, failing to report income from multiple sources, including money from a prior investment scam. This case highlights the ongoing efforts by federal and state agencies, including the recently created National Fraud Enforcement Division and President Trump’s Task Force to Eliminate Fraud, to combat fraud against American people and safeguard vital healthcare programs.