It’s been a busy year for federal prosecutors in Texas. The U.S. Attorney's Office for the Southern District of Texas (covering counties from Houston to the Mexican border) has concluded several significant healthcare fraud cases over the past year, resulting in convictions, settlements, and recoveries totaling more than $12 million.
These enforcement actions span multiple healthcare sectors and demonstrate ongoing patterns of regulatory oversight of federal healthcare programs.
Houston Home Health Agency Falsified Medical Records; Billed $400,000 in False Claims
In May 2025, Fort Bend County home healthcare agency owner Paul Njoku was convicted following a jury trial for operating a fraudulent billing scheme through his Opnet Health Care Services Inc. agency.
According to the U.S. Attorney who prosecuted the case:
- From 2015 to 2019, Opnet submitted claims totaling over $400,000 to Medicare and received approximately $360,000 in reimbursements
- After he received a request for records from Medicare (likely as part of an RAC audit or UPIC investigation), Njoku falsified records retroactively to support billing submissions
- Njoku and others working at his direction forged signatures of doctors and nurses by cutting and pasting signatures from legitimate documents onto new forms, including a former employee’s signature who had left the agency in 2017 – without her knowledge or consent
- Njoku then submitted the falsified records to Medicare in support of its claims.
- A witness in the jury trial also testified that Njoku bribed a doctor in exchange for approving home health services
The jury deliberated for less than two hours before convicting Paul Njoku on five counts of making false statements relating to health care matters. Each conviction carries a possible five-year term of imprisonment and a maximum $250,000 fine. Njoku has yet to be sentenced.
Houston-Area Pain Management Doctors Pay Six Figures to Settle False Claims Act Allegations
Two separate settlements with pain management physicians involved similar allegations regarding neurostimulator electrode procedures and resulted in combined recoveries exceeding $1.3 million.
- In June 2025, Dr. Benjamin Tiongson, a pain management doctor who practices in Houston, Sugar Land and Katy, agreed to pay $390,082 to settle allegations concerning billing practices for neurostimulator electrode implantation procedures. The government alleged that patients received electro-acupuncture treatments involving minimal wire insertion and external device placement, rather than the invasive surgical procedures billed to Medicare.
- In December 2024, Pearland neurologist and pain medicine doctor Dr. Basem Hamid agreed to pay $948,360 to settle similar allegations. As Dr. Tiongson did, Dr. Hamid submitted Medicare claims for complex surgical neurostimulator electrode implantation procedures that typically require operating rooms and generate thousands of dollars in reimbursements. However, patients allegedly only received simple electro-acupuncture treatments consisting of minimal wire insertion into ears and external device attachment with adhesive tape, performed in a clinic setting without any surgical incisions.
The claims against both doctors involved violations of the False Claims Act, which prohibits knowingly presenting false claims for payment or approval by federal agencies, including the Centers for Medicare and Medicaid Services.
False Claims for Mental Health Services Result in $1.08 Million Settlement
Texas Behavioral Health PLLC (TBH) and United Psychiatry Institute LLC (UPI) settled False Claims Act allegations for $1,083,000 in July 2024.
According to the Department of Justice, from 2017 to 2020, TBH and UPI allegedly submitted Medicare claims for services that physicians had not performed or not directly supervised as required by Medicare. Violations included billing for services when physicians were traveling internationally and therefore unavailable, as well as claims for services that were logistically impossible given physician schedules and patient volume across multiple Houston-area locations.
“Certain non-physician practitioners can provide mental health services but … must bill the government programs directly using their own provider numbers. This did not happen in this case,” alleged the U.S. Attorney's Office supervising the investigation. Instead, services by non-physician practitioners were allegedly billed and reimbursed by Medicare, TRICARE, and Medicaid at a higher physician rate.
This settlement originated from a qui tam whistleblower complaint, United States ex rel. Gonzalez v. Texas Behavioral Health PLLC et al. The whistleblower will receive 17 percent of the settlement proceeds.
McAllen Pharmacist and “Marketers” Paid Illegal Kickbacks for Prescription Referrals; Sentenced to Federal Prison
Four individuals received federal prison sentences in May 2025 for participation in a prescription referral kickback scheme involving over $110 million in false claims to federal healthcare programs.
Former licensed pharmacist John Ageudo Rodriguez conspired with Mohammad Imtiaz Chowdhury and Hector de la Cruz Jr. of Edinburg and Alex Flores Jr. of McAllen to pay kickbacks to medical providers for prescription referrals, particularly compound drug preparations.
The scheme operated from 2014 to 2016, with McAllen-based Pharr Family Pharmacy at the center of the conspiracy.
In a similar case, an Edinburg physician and his son both pleaded guilty in January 2025 to conspiring to receive kickbacks in exchange for referring prescriptions to local pharmacies.
Dr. Tajul Shams Chowdhury operated Center for Pain Management, a medical practice in Edinburg, while his son Mohammad Imtiaz Chowdhury served as a pharmacy marketer. According to court documents, the father's clinic referred expensive compound drug prescriptions to the pharmacy in exchange for kickbacks totaling $6.6 million paid to the son.
Both father and son are awaiting sentencing, which could include up to five years in prison and a maximum $250,000 fine.
Sugar Land Physician Agrees to $8.9 Million Settlement Over False Claims and Anti-Kickback Statute Allegations
National Interventional Radiology Partners PLLC (NIRP) and its founder, Dr. Andrew Gomes of Sugar Land, Texas, settled False Claims Act and Anti-Kickback Statute allegations for $8,884,091 in August 2024.
The government alleged that beginning in 2015, Gomes established multiple Texas clinics for peripheral arterial disease treatment and solicited investments from physicians who could refer patients. The alleged arrangement created financial incentives for referrals through profit-sharing mechanisms tied to patient volume and subsequent surgical procedures.
The settlement involved highly compensated procedures, including arteriograms, angiograms, angioplasties, and atherectomies for treating lower limb circulation issues in elderly patients.
A whistleblower initiated this case through a qui tam complaint filed in 2018 and will receive 19 percent of the recovery.
“Dr. Gomes and NIRP clearly prioritized greed above the health and well-being of their elderly patients,” said FBI Houston Special Agent in Charge Douglas Williams. “We applaud the qui tam whistleblower who exposed this scheme and encourage others to report illegal medical practices.”
Houston Anesthesiology Service Provider Self-Discloses Potential Stark Law Violations
Northwest Anesthesiology and Pain Services (NWAP) settled potential False Claims Act and Stark Law violations for $999,999 in January 2025. This case resulted from the company's self-disclosure following an internal investigation.
The allegations involved bonus payment calculations for independently contracted pain management practices. NWAP's contractor allegedly modified bonus calculations to base payments on laboratory referrals rather than practice productivity metrics specified in their agreements.
From 2019 through 2021, NWAP paid approximately $1.8 million in bonus payments under the allegedly improper calculation method. The government characterized these arrangements as improper financial incentives in violation of the Stark Law.
NWAP received consideration for its voluntary self-disclosure and cooperation with the investigation.
Harlingen DME Providers Fraudulently Billed Medicare $14 Million; Face Up to 10 Years in Federal Prison
In April 2025, Jeremiah and Maria Luisa Yzaguirre, operators of Southwest Medical Homepatient in Harlingen, pleaded guilty to Medicare fraud involving their durable medical equipment (DME) company. The couple admitted to billing Medicare approximately $14 million for power wheelchairs, parts, and repairs for just 37 Medicare beneficiaries between 2019 and 2023. The couple billed $736,072 for one beneficiary alone.
Their ill-gotten gains were used to purchase cryptocurrency, vehicles, electronics, and other luxury items.
The couple will be sentenced in August. They each face up to 10 years imprisonment and a possible $250,000 maximum fine.
Healthcare Providers: Remain Vigilant about Compliance
Federal and state enforcement agencies tend to follow patterns. If your healthcare practice or services provider operates in any of the healthcare sectors above – including pain management, home health services, mental health services, DME, or peripheral arterial disease treatment – or if you employ a contractor to manage your practice, be especially vigilant about compliance practices.
Maintain comprehensive documentation, ensure proper supervision of services, and carefully monitor financial arrangements for compliance. If you do discover potential violations, work with our experienced healthcare investigation attorneys to evaluate your options, including voluntary self-disclosure.
Concerned about compliance with healthcare fraud laws or need guidance on False Claims Act, Stark Law, or Anti-Kickback Statute requirements? Contact Hendershot Cowart P.C. today to discuss your compliance questions and protect your practice from potential violations.