Fort Worth, Texas — A federal jury has convicted a Texas mental health clinic owner in a $26 million scheme targeting TRICARE, the military health care program serving U.S. service members and their families, after prosecutors said millions of dollars were diverted toward luxury purchases and other personal expenses.
Kevin Curry was found guilty Friday on nine federal charges stemming from allegations that mental health clinics he owned submitted fraudulent claims to TRICARE for therapy that was medically unnecessary or was never provided.
According to the U.S. Department of Justice, Curry’s three clinics in Fort Worth and Plano, Texas, and Fort Walton Beach, Florida, collectively submitted more than $26 million in false, fraudulent or kickback-related claims. The clinics received approximately $17 million from those claims.
Jury Convicts Clinic Owner on Nine Charges
The jury found Curry 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.
Federal prosecutors alleged that Curry used the clinics to target members of the military community and their families for transcranial magnetic stimulation therapy, commonly known as TMS.
According to the Justice Department, the treatment was promoted to people who did not need it or potentially did not qualify for it.
Prosecutors alleged that Curry spent more than $5.5 million on kickbacks to persuade active-duty service members, veterans and family members to agree to the treatments.
Prosecutors Say Millions Funded a Lavish Lifestyle
The case gained additional attention because of how prosecutors said Curry used money connected to the alleged scheme.
The government said proceeds were spent on luxury hotel stays, a casino-themed party and a gold-plated Tesla Cybertruck valued at more than $100,000.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said:
“This defendant exploited a critical health care program serving active-duty service members 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 of the Department of Justice’s National Fraud Enforcement Division said. “Such conduct is an affront to the military community and the American public.”
The allegations centered on money intended to cover legitimate medical care for people connected to the U.S. military.
Prosecutors Accused Curry of Posing as a Doctor
The Justice Department also alleged that Curry misrepresented his professional credentials while carrying out the scheme. Prosecutors said he posed as a medical doctor and used the credentials of actual doctors to submit claims to TRICARE.
He was also accused of directing employees to falsify medical records. Those records were allegedly submitted to TRICARE in an effort to make fraudulent claims appear legitimate.
The alleged conduct allowed the clinics to continue submitting claims while concealing the circumstances surrounding the treatments and payments, according to federal prosecutors.
U.S. Attorney Says Service Members Were Targeted
U.S. Attorney Ryan Raybould also accused Curry of deliberately exploiting people who relied on the military health care system. Raybould said:
“Kevin Curry shamelessly preyed on the trust of service members, veterans, and their families, siphoning millions from TRICARE through lies and coercion,” U.S. Attorney Ryan Raybould said. “He fabricated medical records, stole doctors’ identities and clogged the system with fraudulent claims, all while lining his pockets with kickback-tainted money.”
The allegations involved active-duty personnel, veterans and family members, making the case broader than a conventional insurance fraud investigation.
Federal authorities said the fraudulent claims were connected to the three clinics operated by Curry in Texas and Florida.
Curry Now Awaits Sentencing
Curry remains in federal custody proceedings and is awaiting sentencing following Friday’s conviction.
He faces up to 10 years in prison for each of the nine counts on which he was convicted. The eventual sentence will be determined by the federal court after considering the applicable sentencing rules and circumstances of the case.
The conviction represents the latest development in a federal investigation focused on alleged manipulation of a military health care program.
For now, the case has moved from the allegations and trial phase to sentencing, where the court will determine Curry’s punishment for the convictions.
What do you think about the allegations involving the military health care program and the luxury spending described by prosecutors? Share your thoughts in the comments below.
