Summary (tl;dr)

James Shuford Price III, a Raleigh man who owned a California-based laboratory, pleaded guilty to orchestrating a massive healthcare fraud scheme involving illegal kickbacks for patient referrals, which defrauded Medicare and Medi-Cal of over $60 million, and to filing a false federal tax return.

Essential Background

James Shuford Price III owned and operated Golden Star Labs (GSL) in Los Angeles, California. Between August 2023 and June 2025, GSL submitted over $96 million in fraudulent claims to Medi-Cal and Medicare for multi-panel testing for SARS-CoV-2 (COVID-19), Influenza A and B (the flu), and Respiratory Synctial Virus (RSV). These claims were based on fraudulent test samples and false authorizations, some obtained through identity theft, resulting in over $60 million in payouts to GSL. Price directed GSL to illegally compensate "collectors" based on the volume of test specimens they provided, a practice prohibited under federal healthcare laws, paying over $17 million in kickbacks between August 2023 and January 2025. He also created fake contracts to mask the illegal kickback scheme.

The Full Story

On June 24, 2026, James Shuford Price III, 59, of Raleigh, North Carolina, pleaded guilty in federal court to paying illegal kickbacks for patient referrals to his California-based lab and filing a false federal tax return. This plea agreement stems from a widespread investigation into his operation of Golden Star Labs, which defrauded government healthcare programs of tens of millions of dollars. Price also admitted to filing a false federal income tax return for 2022, failing to report income from multiple sources, including money from a prior investment scam. At sentencing, Price faces a statutory maximum of 13 years' imprisonment, a $500,000 fine, and three years of supervised release. He will also be required to pay restitution to Medi-Cal, Medicare, and the Internal Revenue Service (IRS), among other victims.

Why It Matters

This case highlights the severe financial impact of healthcare fraud on taxpayer-funded programs like Medicare and Medi-Cal, which are vital for legitimate patient care. The use of illegal kickbacks, fraudulent test samples, and stolen identities to illicitly obtain millions of dollars undermines the integrity of the healthcare system and public trust in medical services. The guilty plea and impending sentencing demonstrate the unwavering commitment of law enforcement agencies, including the FBI and IRS Criminal Investigation, to protecting federal healthcare programs and holding fraudsters accountable.

Geographic Location

• Wilmington, New Hanover County, North Carolina, United States (federal court where Price pleaded guilty)
• Raleigh, Wake County, North Carolina, United States (residence of James Shuford Price III)
• Los Angeles, Los Angeles County, California, United States (location of Golden Star Labs and where fraudulent claims originated)