Texas Medicaid fraud and kickbacks

Oral surgeon Dr. Gary Schwarz

South Texas oral surgeon Dr. Gary Schwarz and five other dentists have been indicted in a federal case alleging Medicaid fraud of $63,000 and a referral kickback scheme. Federal investigators arrested Schwarz alleging that he billed Medicaid for services billed but not rendered and for procedures performed by an unqualified dental assistant. His office manager and assistant have been charged and face federal conspiracy and health care fraud charges for their alleged role in the scheme.

Prosecutors say a related kickback scheme funneled 15 percent kickbacks to dentists who sent him Medicaid patients.

State Rep. Tara Rios Ybarra

One of the other dentists indicted is State Rep. and dentist Tara R. Rios Ybarra. Rios Ybarra is accused in the indictment of accepting payments worth more than $12,000 between August and November 2008 for referring three patients to Schwarz. The last payment allegedly came Nov. 3, 2008, the day before Rios Ybarra was elected to her first term as a Texas State representative.

If convicted, Schwarz and his two staff members each face up to 10 years in prison. Rios and the other indicted dentists face up to five years for receiving bribes if found guilty.

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