Texas Counselor Convicted in $26 Million Tricare Fraud Scheme
Kevin Curry, a 64-year-old licensed professional counselor from Frisco, Texas, was convicted last week of defrauding the federal government of $26 million through a healthcare scheme targeting Tricare, the Department of Defense’s health program. Curry used the funds to finance a lavish lifestyle that included a gold-plated Tesla Cybertruck and casino-themed parties, according to the U.S. Department of Justice.
Fraudulent Billing and Fake Credentials
Curry operated three mental health clinics across Texas and Florida. According to the Justice Department, he billed Tricare for transcranial magnetic stimulation (TMS) therapy—a treatment for severe depression using magnetic fields to stimulate brain nerve cells—for service members and their families who were either ineligible for the treatment or never received it.
To facilitate the fraud, Curry falsely represented himself as a doctor and utilized fake medical credentials. The Justice Department stated that Curry directed his employees to fabricate medical records, which were then submitted to Tricare as proof of services. In total, Curry submitted more than $26 million in claims that officials described as false, fraudulent, and tainted by illegal kickbacks.
Illegal Kickbacks and Personal Spending
The scheme involved paying more than $5.5 million in kickbacks to persuade eligible Tricare beneficiaries to sign up for the TMS therapy. While Curry billed the government for $26 million, Tricare paid out $17 million, which Curry used to fund personal luxuries.
National Fraud Enforcement Division Assistant Attorney General Colin McDonald stated in a release that Curry diverted taxpayer dollars to bankroll hotel stays, a casino-themed party, and a gold-plated Tesla Cybertruck. McDonald described the conduct as an “affront to the military community and the American public.”
Jury Verdict and Potential Penalties
A jury convicted Curry on nine total counts: three counts of healthcare fraud, three counts of offering and paying illegal kickbacks, and three counts of engaging in monetary transactions in criminally derived property. Each of these counts carries a maximum penalty of 10 years in prison.
U.S. Attorney Ryan Raybould said in a statement that Curry “shamelessly preyed on the trust of service members, veterans, and their families.” Raybould added that the conviction serves as a message that those who defraud federal healthcare programs and manipulate the military community will face federal prosecution.
Multi-Agency Investigation
The conviction followed a joint investigation involving several federal and state agencies, including:
- The Defense Criminal Investigative Service
- The Federal Bureau of Investigation (FBI)
- The Texas Attorney General’s Medicaid Fraud Control Unit
- The Department of Veterans Affairs Office of Inspector General
- The U.S. Department of Justice
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