A federal jury convicted Texas mental health clinic owner Kevin D. Curry in a $26 million scheme targeting TRICARE, the military health program. Prosecutors said Curry billed the program for transcranial magnetic stimulation therapy that was medically unnecessary or never provided. They also said he used proceeds for luxury purchases, including a gold-plated Tesla Cybertruck valued at more than $100,000.
Curry, 64, was found guilty in federal court in Fort Worth on nine counts involving health care fraud, illegal kickbacks and transactions involving criminally derived property. He is scheduled to be sentenced later and faces a maximum of 10 years in prison on each count.
| 1) | Jury convicts clinic owner in military health case |
|---|---|
| 2) | Prosecutors describe false TMS treatment claims |
| 3) | Kickbacks and fabricated records formed the alleged scheme |
| 4) | Luxury spending included a gold-plated Cybertruck |
| 5) | Sentencing will follow the federal conviction |
Jury convicts clinic owner in military health case
Kevin D. Curry, of Frisco, Texas, was convicted after a federal jury found him guilty of three counts of health care fraud, three counts of offering and paying illegal health care kickbacks, and three counts involving monetary transactions in criminally derived property. The verdict followed a federal trial in Fort Worth focused on claims submitted to TRICARE, which serves active-duty service members, retirees and their families.
Prosecutors describe false TMS treatment claims
According to prosecutors, Curry owned and operated mental health clinics in Plano and Fort Worth, Texas, and Fort Walton Beach, Florida. The clinics submitted more than $26 million in claims to TRICARE for transcranial magnetic stimulation, or TMS, therapy. Authorities said the treatment was medically unnecessary in some cases and was not provided in many others. TRICARE ultimately paid approximately $17 million, according to the Justice Department.
Kickbacks and fabricated records formed the alleged scheme
Prosecutors said Curry paid more than $5.5 million in illegal kickbacks to persuade service members, veterans and their relatives to consent to TMS treatment for which they did not qualify. The government also alleged that he falsely presented himself as a medical doctor, used licensed physicians’ credentials without permission and directed employees to create false medical records supporting the claims.
“This defendant exploited a critical health care program serving active-duty servicemembers and their families, diverting taxpayer dollars to bankroll personal luxuries ranging from hotel stays to a casino-themed party and even a gold-plated Tesla Cybertruck,” Assistant Attorney General Colin M. McDonald said.
Luxury spending included a gold-plated Cybertruck
The government presented evidence that Curry used fraud proceeds for luxury hotel stays, a casino-themed party and a gold-plated Tesla Cybertruck worth more than $100,000. The spending formed part of the monetary transaction charges and illustrated how prosecutors said the alleged scheme converted public health funds into personal wealth.
Sentencing will follow the federal conviction
Curry will be sentenced at a later date by a federal district judge. Each of the nine counts carries a maximum penalty of 10 years in prison, although the final punishment will depend on the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Ryan Raybould said Curry had taken advantage of service members, veterans and their families by submitting claims supported by fabricated records and kickback-tainted payments.
| 1 | Curry was convicted on nine federal counts. |
|---|---|
| 2 | The clinics submitted more than $26 million in TRICARE claims. |
| 3 | TRICARE paid approximately $17 million, according to prosecutors. |
| 4 | Prosecutors alleged illegal kickbacks, identity misuse and fabricated records. |
| 5 | Sentencing is pending, with a maximum of 10 years per count. |
Summary
The conviction concludes the trial phase of a case alleging that a Texas clinic owner exploited TRICARE through false TMS claims, kickbacks and fabricated documentation. The case now moves to sentencing, where the court will determine the punishment after reviewing federal guidelines and statutory requirements.
Frequently Asked Questions
Who was convicted?
Kevin D. Curry, a 64-year-old mental health clinic owner from Frisco, Texas, was convicted in federal court.
What was the alleged fraud scheme?
Prosecutors said Curry’s clinics submitted fraudulent TRICARE claims for TMS therapy that was unnecessary or not provided, supported by kickbacks and false records.
What sentence could Curry face?
Each of the nine counts carries a maximum penalty of 10 years in prison. The judge will determine the sentence at a later date.
