DOJ: Texas Mental Health Clinic Owner Convicted in $26M Scheme to Defraud Military Health Benefits Program

• U.S. Department of Justice reports TRICARE paid approximately $17 million based on fraudulent claims submitted by Acuity clinics.
• U.S. Department of Justice states the defendant faces a maximum penalty of 10 years in prison on each count.

A federal jury convicted Kevin D. Curry, owner of Acuity TMS clinics, for orchestrating a $26 million scheme to defraud TRICARE by billing for medically unnecessary or unprovided TMS therapy. Curry paid over $5.5 million in kickbacks to servicemembers, veterans, and their families to consent to fraudulent treatments.

Curry used doctors’ credentials without consent, fabricated medical records, and laundered proceeds through luxury purchases. TRICARE paid approximately $17 million based on false claims. He was found guilty of three counts each of health care fraud, illegal kickbacks, and money laundering, facing up to 10 years per count.

• $26 million total fraudulent claims billed to TRICARE
• $5.5 million kickbacks paid to servicemembers and families
• $17 million amount TRICARE paid based on fraudulent claims

• Review claims submitted by Acuity TMS of Plano LLC, Acuity TMS of Fort Worth LLC, and Emerald Coast TMS of Fort Walton Beach LLC for TMS therapy.
• Check for use of doctors’ credentials without their knowledge in TRICARE billing processes.
• Monitor for kickback payments exceeding $5.5 million related to TMS therapy consent among military beneficiaries.

This case highlights the vulnerability of federal health benefit programs like TRICARE to large-scale fraud, kickbacks, and money laundering. Compliance officers must be vigilant for schemes involving fabricated medical records, unauthorized use of medical credentials, and inducements to patients. The conviction demonstrates aggressive enforcement and underscores the need for robust controls to detect and prevent similar abuses, especially where military and veteran communities are targeted. It also signals heightened scrutiny of billing practices and provider accountability.