A recent announcement from Texas Attorney General Ken Paxton's office has revealed the sentencing of Houston dentist Rene Fernandez Gaviola to 60 months in federal prison for engaging in a multimillion-dollar healthcare fraud scheme. According to a press release, Gaviola was also hit with three years of supervised release and is ordered to pay nearly $5 million in restitution, in addition to a personal money judgment exceeding $2.9 million.
Attorney General Paxton condemned the actions of Gaviola, citing the exploitation of Medicaid funding intended to support healthcare services for hardworking taxpayers. "Fraudulent schemes like the one perpetrated by Mr. Gaviola undermine our health care system and maliciously exploit funding that comes from hardworking taxpayers," Paxton stated, vowing to bring justice to those who steal from public programs.
Gaviola's list of convictions includes one count of conspiracy to commit healthcare fraud, along with multiple counts of healthcare fraud, kickback conspiracies, and money laundering. Through kickbacks to marketers for child Medicaid beneficiary referrals, Gaviola billed for services not rendered and employed unlicensed individuals to perform dentistry.
The investigation was spearheaded by members of Paxton's Medicaid Fraud Control Unit, including Sergeant Alfred Paige and Investigative Auditor Mai Tang, alongside Captain Alex Chancia, in cooperation with the FBI and the Department of Health and Human Services' Office of Inspector General. The U.S. Attorney's Office for the Southern District of Texas successfully prosecuted the case against Gaviola.
Reflecting on the broader impact, the Medicaid Fraud Control Unit has been significantly effective in recovering funds for the state. Since 2021, the unit has recouped more than $612 million in settlements, judgments, and restitution for Texas taxpayers. Funded 75 percent federally and 25 percent by the State of Texas, the unit's efforts have returned more than 49 dollars for every state dollar spent over the past three years.
