Kevin D. Curry, a 64-year-old mental health clinic owner from Frisco, Texas, was convicted by a federal jury in Fort Worth on Thursday of orchestrating a $26 million health care fraud scheme targeting TRICARE, the military’s health care program for active-duty servicemembers, retirees, and their families. Prosecutors stated that Curry used the illicit proceeds to fund luxury expenses, including a gold-plated Tesla Cybertruck valued at more than $100,000.
Federal Jury Convicts Kevin D. Curry on Fraud and Kickback Charges
As reported by the Justice Department, a federal jury found Curry guilty of three counts of health care fraud, three counts of offering and paying illegal health care kickbacks, and three counts of engaging in monetary transactions in criminally derived property. Trial evidence and court records demonstrated that Curry directed and managed mental health facilities located in Fort Walton Beach, Florida, alongside Plano and Fort Worth, Texas.
Federal prosecutors detailed that Curry exploited TRICARE by billing the program for transcranial magnetic stimulation (TMS) therapy that was medically unnecessary or, in many cases, never provided to patients. Approximately $17 million was ultimately paid out by TRICARE after Curry’s clinics presented the program with upwards of $26 million in claims tainted by kickbacks, falsehoods, or fraud.
Illegal Kickbacks and Identity Theft Tactics
According to evidence presented at trial, Curry paid more than $5.5 million in illegal kickbacks to active-duty servicemembers, veterans, and their family members to persuade them to consent to TMS therapy they did not qualify for and frequently did not receive. The Justice Department stated that Curry falsely represented himself as a medical doctor during the operation of the scheme.
Prosecutors also established that Curry used licensed doctors' credentials without their knowledge or consent to submit fraudulent claims to TRICARE. He also directed clinic employees to fabricate medical records to justify the billings.
Luxury Spending and Pending Sentencing
Assistant Attorney General Colin M. McDonald stated that Curry diverted taxpayer dollars meant for military families to bankroll personal luxuries. Prosecutors demonstrated that Curry laundered fraud proceeds by paying for luxury hotel stays, a lavish casino-themed party, and the gold-plated Tesla Cybertruck.
U.S. Attorney Ryan Raybould criticized the clinic owner for shamelessly preying on the trust of servicemembers and veterans. Curry is scheduled to be sentenced at a later date by a federal district court judge and faces a maximum penalty of 10 years in prison on each of the nine counts.
Worth a look