Texas psychiatrist Anthony Valdez indicted on alleged $41 million in health care fraud

July 22, 2010

On June 14, 2010, Texas psychiatrist Anthony Francis Valdez was arrested and charged with carrying out an estimated $41 million scheme to defraud state and federal health care plans. 

Valdez’s arrest followed a June 9^th indictment by federal grand jury in El Paso which charged Valdez with 99 counts including, among other things, 21 count of health care fraud; 20 counts of false statements relating to health care fraud matters and 21 counts of mail fraud. 

The indictment specifically alleges that between January 2001 and December 2009, Valdez caused claims to be submitted to Medicaid, Medicare, TriCare and the Texas Workers’ Compensation Commission for services that were never performed and that the treatment that was actually delivered to his patient was prolotherapy, a procedure which health care programs do not reimburse for. 

The federal government is seeking a criminal forfeiture from Valdez of $1.7 million in cash, his residences in both El Paso and San Antonio and five vehicles.  The government is also seeking a monetary judgment in the case of more than $41 million.

Source: “Texas pain management physician and psychiatrist arrested based on federal health care fraud indictment,” press release of the U.S. Department of Justice, U.S. Attorney’s Office Western District of Texas, June 14, 2010.