Texas Attorney General Ken Paxton’s Medicaid Fraud Control Unit (MFCU) has been instrumental in taking down a major opioid distribution ring, resulting in charges against nine individuals involved in illegal pharmaceutical activities. According to a press release from Paxton’s office, nearly 70 million opioid pills and more than 30 million doses of other prescription drugs flooded the black market, sold through pill-mill pharmacies primarily in the Houston area.
The investigation, which exposed the distribution of addictive opioids such as oxycodone, hydrocodone, and hydromorphone, revealed that the pills were often sold at inflated prices. The distributors employed sham compliance measures meant to circumvent DEA oversight, but ultimately nine out of ten defendants have pled guilty and are awaiting sentencing. Serving sold at inflated prices, prescription drug potentiators like alprazolam, carisoprodol, and promethazine were also provided to enhance the opioids' effects by the distributors.
Leaders in the MFCU's investigation included Sergeant Mike Price, Captain Stacey Overbay, and Investigative Auditor Kalpana Patel, working alongside multiple federal agencies such as the DEA, HHS-OIG, FBI, and others. Assistant Attorney General Abdul Farukhi, as noted in the Paxton office's announcement, played a pivotal role in prosecuting the case.
Attorney General Paxton made it clear the resolve his office holds against those profiting from substance abuse, saying, “This landmark case demonstrates our tenacity and resolve in the fight against prescription drug rings that have worsened the deadly opioid crisis facing our country. My office will continue to pursue those who exploit our health care system for profit and destroy Texas families with dangerous, addictive drugs.” By leading the fight, the MFCU has found more than $612 million in financial recoveries for Texas taxpayers since 2021, according to the same press release.
The funding of the MFCU is largely covered by a grant from the U.S. Department of Health and Human Services, with the State of Texas covering the remaining 25 percent. For the fiscal year 2023, this amounted to over $20 million from HHS and nearly $7 million from the state. The MFCU's efforts have proven to be exceptionally cost-effective, bringing in over 49 dollars for every state dollar spent in the past three years.
