Texas Clinic Owner Convicted in $26 Million TRICARE Fraud Scheme

A federal jury convicted a Texas mental health clinic owner, Kevin D. Curry, 64, on Thursday for orchestrating a $26 million scheme to defraud the military's health care program, TRICARE. Prosecutors stated that Curry used some of the illicit funds for personal luxuries, including a gold-plated Tesla Cybertruck valued at over $100,000.

Curry was found guilty of three counts each of health care fraud, illegal health care kickbacks, and engaging in monetary transactions in property derived from criminal activity. Evidence presented at trial indicated that Curry, who owned mental health clinics in Texas and Florida, billed TRICARE for medically unnecessary transcranial magnetic stimulation (TMS) therapy or for services that were never provided.

Prosecutors alleged that Curry paid over $5.5 million in illegal kickbacks to individuals to persuade active-duty servicemembers, veterans, and their families to undergo TMS therapy, for which many did not qualify. The Justice Department stated that Curry falsely presented himself as a medical doctor and used other doctors' credentials without their knowledge to submit claims. He also allegedly directed employees to falsify medical records to support fraudulent billings.

In total, Curry's clinics submitted more than $26 million in false, fraudulent, or kickback-tainted claims to TRICARE, resulting in approximately $17 million in payments. The funds were allegedly laundered through expenditures on luxury hotel stays, a casino-themed party, and the custom Tesla Cybertruck.

"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 in a statement. U.S. Attorney Ryan Raybould added that Curry "shamelessly preyed on the trust of servicemembers, veterans, and their families."

Curry faces a maximum penalty of 10 years in prison for each of the nine counts. Sentencing will be determined by a federal district court judge after considering sentencing guidelines and other factors.