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Texas Physician Convicted in $70 Million Health Care Fraud Scheme, Faces Decades in Prison

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Published on June 18, 2024
Texas Physician Convicted in $70 Million Health Care Fraud Scheme, Faces Decades in PrisonSource: Unsplash/ Tingey Injury Law Firm

In a significant crackdown on health care fraud, Texas Attorney General Ken Paxton's office has announced the conviction of Dr. David Young, from Fredericksburg, Texas. Accused of orchestrating a $70 million scheme, the 61-year-old physician was found guilty by a federal jury for submitting fraudulent claims for unnecessary orthotic braces and genetic tests. The claims involved more than 13,000 beneficiaries and resulted in Young receiving $475,000 in illicit kickbacks from medical providers, as reported by the Office of the Texas Attorney General.

Highlighting a streak of such endeavors, the Attorney General stated, “This successful investigation by my office demonstrates our ongoing commitment to protecting taxpayers and fighting fraud.” Paxton reaffirmed the dedication to curbing illegal activities that siphon taxpayer funds. Dr. Young was convicted of conspiracy to commit healthcare fraud and multiple counts of false statements relating to healthcare matters, with the conspiracy charge potentially leading to a ten-year prison sentence and each statement charge up to five years, respectively.

Collaboration between Paxton's Medicaid Fraud Control Unit (MFCU) and federal agencies proved essential in bringing Young to justice. Sergeant Michelle Killinger, Investigative Auditor Jennifer Blakely, and Captain Justin Boyce led the MFCU's investigation, working in tandem with the Department of Health and Human Services' Office of Inspector General. Department of Justice Strike Force attorneys Brynn Scheiss and Ethan Womble brought the prosecution forward, delivering yet another blow to fraudulent operations targeting the healthcare system.

Efforts by the MFCU have proven fruitful, with over $612 million recouped in various recoveries for the benefit of Texas taxpayers since 2021. Funded partly by the state, the MFCU leverages a 75 percent contribution from the U.S. Department of Health and Human Services—totaling roughly $20,944,200 for fiscal year 2023—with the State of Texas contributing the 25 percent remainder. Amid these recoveries, Young awaits sentencing at a date to be determined in the near future.