Federal prosecutors announced a major health care fraud takedown in the Northern District of Texas, framing it as the largest such effort the district has ever undertaken. As part of the action, 13 defendants were charged in seven separate cases for crimes that, according to officials, targeted vulnerable patients and exploited taxpayer funded programs. The announcement was presented as part of a broader national enforcement push.
The financial scale of the schemes was substantial. According to the officials, the cases represent collective fraudulent billing of more than 365 million dollars submitted to federally funded programs and other insurers, a figure described as an all-time high for the district. In coordination with law enforcement partners, authorities also seized over 35 million dollars in cash, luxury vehicles and other assets.
Officials said the defendants diverted resources that were meant to help those most in need. According to the announcement, some of the accused diverted funds intended to serve vulnerable populations, including elderly people, Medicare beneficiaries and members of the military, in order to line their own pockets and further their own financial interests. The seized assets, they said, would help return some of that money to taxpayers.
One of the cases involved a wound care scheme. According to the officials, the owner of a skin graft company offered wound care products in exchange for illegal kickbacks, resulting in approximately 260 million dollars in false and fraudulent claims. The case was highlighted as an example of how kickback arrangements can drive enormous losses to government health programs.
Another case struck at service members and veterans. According to the announcement, a psychological counselor in North Texas recruited members of the military and veterans, including service members who actually suffered from depression and PTSD, to receive medically unnecessary therapy. Some of those individuals never received any therapy or treatment at all, yet the defendant billed TRICARE for over 26 million dollars in false and fraudulent claims.
Officials also pointed to schemes that exploited the pandemic and other vulnerabilities. In one case, four defendants were accused of shipping COVID-19 test kits to, and billing the beneficiary numbers of, deceased people. Other schemes cited included unnecessary genetic testing, durable medical equipment, fraudulent EEG testing and hospice fraud that siphoned money from dying patients, with US Attorney Ryan Raybould and partner agencies vowing to pursue such fraud aggressively.