Summary
A federal jury in Fort Worth, Texas, convicted Kevin D. Curry, 64, of Frisco, Texas, for his role in a $26 million scheme involving health care fraud, illegal kickbacks, and money laundering.
According to the U.S. Department of Justice, Curry operated mental health clinics that billed TRICARE for transcranial magnetic stimulation (TMS) therapy that was medically unnecessary or, in many cases, never provided.
The clinics submitted more than $26 million in fraudulent and kickback-tainted claims to TRICARE, which paid approximately $17 million. Prosecutors said Curry also used more than $5.5 million in kickbacks to persuade servicemembers, veterans, and their family members to accept TMS treatment.
Key details of the case
| Detail | Information |
|---|---|
| Defendant | Kevin D. Curry |
| Age | 64 |
| Location | Frisco, Texas |
| Scheme value | More than $26 million in fraudulent TRICARE claims |
| TRICARE payments | Approximately $17 million |
| Kickbacks | More than $5.5 million |
| Treatment involved | Transcranial magnetic stimulation (TMS) |
| Victims targeted | Active-duty servicemembers, veterans, and their families |
| Convictions | 3 health care fraud, 3 illegal kickback, and 3 monetary transaction counts |
| Sentence | To be determined |
| Investigation | DCIS, FBI, Texas MFCU, and VA-OIG |
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Curry billed TRICARE for unnecessary or unprovided treatment
According to court documents and evidence presented at trial, Curry owned and operated two purported mental health clinics in Texas, Acuity TMS of Plano LLC and Acuity TMS of Fort Worth LLC. He also operated Emerald Coast TMS of Fort Walton Beach LLC in Florida.
The clinics, collectively referred to as Acuity, provided or billed for transcranial magnetic stimulation therapy. Prosecutors said Curry’s clinics used kickbacks to persuade active-duty servicemembers, veterans, and their family members to consent to TMS treatment even when they did not qualify for it.
In many instances, the DOJ said, the patients did not receive the treatment that was billed to TRICARE.
More than $5.5 million in kickbacks allegedly paid
The DOJ said Curry and Acuity offered and paid more than $5.5 million in kickbacks as part of the scheme.
The payments were allegedly used to influence patients’ decisions to undergo TMS therapy and enable the clinics to submit claims to TRICARE.
Acuity ultimately billed TRICARE more than $26 million in false, fraudulent, and kickback-tainted TMS claims. TRICARE paid approximately $17 million based on those claims.
Curry used doctors’ credentials and fabricated medical records
The prosecution also presented evidence concerning the alleged use of medical credentials and falsified records.
According to the DOJ, Curry falsely represented himself as a medical doctor and used the credentials of actual physicians without their knowledge or consent when submitting claims to TRICARE.
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Curry also directed employees to fabricate medical records. Prosecutors said the records were submitted to TRICARE to support fraudulent billing and make the claims appear legitimate.
The alleged conduct involved several elements commonly associated with health care fraud:
- Billing for services that were not medically necessary.
- Billing for treatment that was not provided.
- Paying illegal health care kickbacks.
- Using physicians’ credentials without authorization.
- Creating false medical records.
- Submitting fraudulent claims to a federal health care program.
- Using proceeds from the scheme for personal expenses.
Fraud proceeds spent on luxury items
The DOJ said Curry laundered some of the proceeds from the scheme by spending the money on personal luxuries. The expenditures included hotel stays, a lavish casino-themed party, and a gold-plated Tesla Cybertruck valued at more than $100,000.
The DOJ released an image identifying the Cybertruck as having been purchased with fraudulent proceeds.
Jury convicted Curry on nine counts
The federal jury convicted Curry on:
- Three counts of health care fraud
- Three counts of offering and paying illegal health care kickbacks
- Three counts of engaging in monetary transactions involving criminally derived property
Curry is scheduled to be sentenced at a later date.
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Each count carries a maximum penalty of 10 years in prison. The DOJ said the final sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Federal agencies investigated the scheme
The Defense Criminal Investigative Service (DCIS), FBI, Texas Attorney General’s Medicaid Fraud Control Unit, and Department of Veterans Affairs Office of Inspector General investigated the case.
Assistant U.S. Attorney Ethan Womble for the Northern District of Texas and Trial Attorneys Adam Tisdall and Yael Mash of the Justice Department’s Fraud Division Health Care Fraud Section are prosecuting the case.
The DOJ said its National Fraud Enforcement Division was created to investigate and prosecute fraud against the United States. The department also said its Health Care Fraud Strike Force Program currently consists of nine strike forces operating across federal districts.
According to the DOJ, the program has charged more than 6,200 defendants since 2007 who collectively billed federal health care programs and private insurers more than $45 billion.