Investigative work by the Medicaid Fraud Control Unit of Texas Attorney General Ken Paxton’s office helped the U.S. Department of Justice (DOJ) bring charges today against the director and two operators of a Houston-based medical clinic for their alleged participation in a multimillion-dollar health care fraud scheme.

Dr. Douglas Sharp, the medical director of Verimed Health and Medical Wellness Clinic, and clinic operators Dr. Innad Husaini and Hanh Nguyen are accused of submitting around $16 million in fraudulent claims to Medicare and Medicaid for home health care services, diagnostic tests and eye procedures that were medically unnecessary or not provided. The three allegedly cheated Medicare and Medicaid out of more than $12 million.

Attorney General Paxton’s Medicaid Control Fraud Unit assisted the DOJ, FBI, and U.S. Health and Human Services Office of Inspector General in the investigation of the case.

“We’re pleased that our Medicaid Fraud Control Unit played such an important role in helping to stop this multimillion-dollar health care fraud scheme,” Texas Attorney General Ken Paxton said. “My office will continue to work with our federal partners to uncover waste, fraud, and abuse in the Medicare and Medicaid systems, and to ensure Texans’ tax dollars are not stolen by criminals.”

Sharp, Husaini and Nguyen were arrested and charged in an indictment unsealed today with one count of conspiracy to commit health care fraud. Sharp also faces three counts of false statements relating to health care matters. The two other defendants were charged with multiple counts of health care fraud.

During fiscal year 2018, Attorney General Paxton’s Medicaid Control Fraud Unit obtained 82 indictments, 69 convictions, and court-ordered restitution of over $139 million. Last year, the unit received the U.S. Department of Health and Human Services Office of Inspector General’s top award of excellence in fighting fraud, waste and abuse – the number one award from 50 Medicaid fraud control units nationwide.