Texas Clinic Owner Convicted of $26 Million Health Care Fraud

Kevin D. Curry, a 64-year-old mental health clinic owner from Frisco, Texas, was convicted in federal court for orchestrating a $26 million scheme to defraud the military's health care program, TRICARE. The verdict was delivered by a jury on Thursday, with Curry facing three counts of health care fraud, three counts of offering illegal health care kickbacks, and three counts of engaging in transactions involving criminally derived property, according to the Justice Department.

Prosecutors revealed that Curry exploited TRICARE, which serves active-duty servicemembers, retirees, and their families, by fraudulently billing for transcranial magnetic stimulation (TMS) therapy that was often unnecessary or not provided. Authorities indicated that Curry's scheme included paying over $5.5 million in illegal kickbacks to persuade servicemembers and veterans to consent to therapies they did not qualify for.

Curry owned mental health clinics in Plano and Fort Worth, Texas, as well as Fort Walton Beach, Florida. During the trial, evidence showed that he falsely represented himself as a medical doctor, utilized licensed doctors' credentials without their permission, and directed his employees to create fake medical records to support fraudulent claims.

The total amount billed to TRICARE was over $26 million, resulting in approximately $17 million being paid out. Prosecutors also noted that Curry laundered some of the proceeds by spending money on luxury hotel stays, hosting an extravagant casino-themed party, and purchasing a gold-plated Tesla Cybertruck valued at over $100,000.

Assistant Attorney General Colin M. McDonald condemned Curry's actions as a betrayal of trust, stating that he exploited a critical health care program while diverting taxpayer funds for personal luxuries. U.S. Attorney Ryan Raybould accused him of fabricating medical records and stealing doctors' identities for profit.

Curry is scheduled for sentencing at a later date and faces a maximum penalty of 10 years in prison for each of the nine counts.