Medicaid Fraud Control Unit Takes Down Health Care Fraud Scheme
Ken Paxton, Texas Attorney General
AUSTIN, TEXAS – (News Release) Texas Attorney General Ken Paxton announced that Dr. David Young, 61, of Fredericksburg, Texas, was convicted by a federal jury for causing the submission of more than $70 million in fraudulent health care claims. Young wrote fraudulent prescriptions for medically unnecessary orthotic braces and genetic tests for more than 13,000 beneficiaries and received $475,000 in illegal kickbacks from providers.
“This successful investigation by my office demonstrates our ongoing commitment to protecting taxpayers and fighting fraud,” said Attorney General Paxton. “We remain steadfast in our mission to ensure that lawless individuals who exploit our health care system and steal taxpayer funds are brought to justice.”
Young was convicted of one count of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and three counts of false statements relating to health care matters, each carrying a maximum penalty of five years in prison. His sentencing is scheduled for a later date.
The investigation was conducted by Sergeant Michelle Killinger, Investigative Auditor Jennifer Blakely, and Captain Justin Boyce of Paxton’s Medicaid Fraud Control Unit, in cooperation with the Department of Health and Human Services’ Office of Inspector General. The case was prosecuted by Brynn Scheiss and Ethan Womble of the Department of Justice Strike Force.
Since 2021, the MFCU has recovered more than $612 million in settlements, judgments, and restitution for Texas taxpayers. The MFCU receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $20,944,200 for fiscal year 2023. The remaining 25 percent, totaling $6,981,395, is funded by the State of Texas. For every dollar of state funding, the OAG’s MFCU has recovered more than 49 dollars for taxpayers over the last 3 years.
