Court Awards Millions For Texans In Medicaid Fraud Lawsuit

Staff Report

Texas Attorney General, Ken Paxton is the lawyer for the State of Texas and is charged by the Texas Constitution to:

• defend the laws and the Constitution of the State of Texas
• represent the State in litigation
• approve public bond issues

To fulfill these responsibilities, the Office of the Attorney General serves as legal counsel to all boards and agencies of state government, issues legal opinions when requested by the Governor, heads of state agencies, and other officials and agencies as provided by Texas statutes.

The Texas AG sits as an ex-officio member of state committees and commissions and defends challenges to state laws and suits against both state agencies and individual employees of the State.

Many Texans look to the Office of the Attorney General for guidance with disputes and legal issues. The agency receives hundreds of letters, phone calls, and visits each week about crime victims’ compensation, child support, abuse in nursing homes, possible consumer fraud, and other topics. To find out more about the Texas Attorney General, visit the official website at https://texasattorneygeneral.gov/.

Court Awards Millions for Texans in Medicaid Fraud Lawsuit

AUSTIN – Attorney General Ken Paxton today announced that the Hon. Catherine Mauzy of the 126^th Judicial District Court of Travis County has ruled Dr. Richard Malouf of ASDC Holdings, LLC responsible for 1,842 unlawful acts under the Texas Medicaid Fraud Prevention Act.

Dr. Malouf operated orthodontics clinics for many years in the Dallas area and billed tens of millions of dollars to Texas Medicaid.

The Court found that Malouf fraudulently billed Medicaid for services that were actually provided by a different doctor, including over 100 billings he filed while vacationing out of the country.

“Identifying and preventing Medicaid fraud continues to be a top priority for the Office of the Attorney General. Misconduct like this compromises the integrity of the Medicaid program and must be stopped as soon as it is discovered,” said Attorney General Paxton. “I am proud of this recovery of taxpayer money. My office is, as always, committed to ensuring that Medicaid dollars are preserved for those who need it most.”

As a result of the court’s order, Dr. Malouf is liable to Texas for approximately $12 million, plus attorney and court fees.

Read a copy of the order here. 

Request for Opinion

Official Request RQ-0354-KP
Whether a home rule municipality may enter into a contract with a special utility district that prohibits the city from petitioning for decertification of all or part of the special utility district’s certificate of convenience and necessity in the future.

Date Received
Friday, May 15, 2020

Official Requestor
The Honorable Brian Birdwell
Chair, Senate Committee on Natural Resources and Economic Development
Texas State Senate
Post Office Box 12068
Austin, Texas 78711-2068