Doctor Sentenced to Prison for Health Care Fraud Scheme

TYLER – A Dallas County doctor has been sentenced in federal court in Tyler to prison for health care fraud and identity theft violations. Tariq Mahmood, 63, of Cedar Hill, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider. He has been sentenced to 135 months in federal prison and ordered to pay restitution in the amount of $599,128.02 to Medicare, Medicaid, and Blue Cross Blue Shield of Texas.

Federal prosecutors say Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney. From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients and often did so without reviewing the medical records. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, and incorrectly sequenced diagnostic codes. Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. Mahmood was indicted by a federal grand jury on April 11, 2013.

“Americans enjoy the best health care in the world and the cost for this care is expensive,” said John M. Bales, U.S. Attorney. “What we do not need is providers like Tariq Mahmood who masquerade as physicians who pretend to care about American health care but actually are determined to loot the Medicare Trust Fund. He is now being held to account, and I congratulate the prosecution team for a job very well done.”