Texas man convicted in $26M healthcare fraud scheme

A Texas man who alleged to provide professional mental health care to service members and veterans was found guilty last week of defrauding his clients in an elaborate scheme that netted him millions of dollars, resulting in extravagant purchases such as a casino-themed party and a gold-colored Cybertruck.

A federal jury convicted Kevin Curry of Frisco, the owner and operator of two alleged mental health clinics in Texas, of three counts of health care fraud, three counts of offering and paying illegal health care kickbacks, and three counts of engaging in monetary transactions in criminally derived property. Curry faces up to ten years in jail on each count if he is sentenced at a later date.

According to a Justice Department announcement, Curry billed TRICARE—a healthcare program for members of the United States military and veterans—for more than $26 million for mental health treatments that either never occurred, were unnecessary, or were guaranteed through kickbacks. TRICARE paid Curry almost $17 million. Federal officials described Curry’s actions as “an affront to the military community and the American public.”

“Kevin Curry shamelessly preyed on the trust of servicemembers, veterans, and their families, siphoning millions from TRICARE through lies and coercion,” said U.S. Attorney Ryan Raybould. “This conviction sends an unmistakable message that those who manipulate our military community and defraud federal healthcare programs will face full federal prosecution.”

The DOJ claims Curry laundered some of the $17 million he received from TRICARE, spending it on hotel stays, “a lavish casino-themed party,” and what it calls “a gold-plated Tesla Cybertruck.”

Federal officials confiscated the 2024 Cybertruck in January. Curry was accused in June as part of a healthcare fraud investigation that involved 13 defendants from North Texas.

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