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9 arrested in Texas insurance fraud scheme

On Behalf of | Oct 17, 2016 | White Collar Crimes

A lengthy investigation conducted jointly between the Federal Bureau of Investigation and the Defense Criminal Investigative Service reached its climax earlier this month. Nine suspects were arrested Oct. 14, 2016, including eight citizens of Texas, for allegedly participating in an immense health insurance fraud scheme. A 10th individual surrendered voluntarily to the FBI. The defendants represent a variety of occupations, from doctors to businessmen to marketers.

The accused have been charged with defrauding the Tricare insurance program of $100 million. Tricare provides health insurance for active military personnel, veterans and their families. Beneficiaries were allegedly recruited in central Texas, in the Fort Hood area. Allegedly, prescriptions for compounded medicines, custom medication blends that are not always covered by insurance, were billed to the insurance program fraudulently.

The defendants were all named in a 35-count indictment that was released on Oct. 14. Two of the defendants, one the owner and the other the president of a pharmacy, were held for a pre-trial detention hearing on Oct. 20. The remaining individuals were released on bond.

An insurance fraud of this magnitude is a very serious crime, and those alleged to be involved are facing dire consequences. The scheme itself is quite complex in structure, and it will be crucial to understand each defendant’s role for a proper defense to be mounted. An individual caught up in a situation such as this should begin to consider their options as early as possible, and may wish to enlist the help of a Texas criminal defense lawyer who handles allegations of major crimes like this.

Source:, “Tricare fraud investigation brings arrest in Killeen“, David A. Bryant, Oct. 14, 2016