Texas clinic owner convicted in $26M military health fraud tied to gold-plated Cybertruck

A Texas mental health clinic operator has been convicted in federal court after prosecutors accused him of running a $26 million fraud scheme against the military’s health care program. Officials said he used some of the proceeds to finance extravagant purchases, including a gold-plated Tesla Cybertruck valued at more than $100,000.

Kevin D. Curry, 64, of Frisco, was found guilty Thursday in Fort Worth of three health care fraud charges, three counts involving the offer or payment of illegal kickbacks and three counts of conducting monetary transactions with criminally derived property, the Justice Department said.

Prosecutors said Curry targeted TRICARE, the health program for active-duty service members, military retirees and their families. His clinics allegedly billed the program for transcranial magnetic stimulation, or TMS, treatments that were medically unwarranted or never performed.

FBI LAUNCHES ‘MOST WANTED FRAUDSTERS’ LIST AS DOJ CHARGES OHIO DEFENDANTS IN $30M MEDICAID SCHEME FOR KIDS

Gold-plated Tesla Cybertruck purchased by Kevin Curry with proceeds from a $26 million TRICARE fraud scheme

Federal prosecutors said Kevin Curry bought this gold-plated Tesla Cybertruck with money generated through a $26 million scheme targeting TRICARE. (DOJ)

Trial evidence showed that Curry owned and ran mental health clinics in Plano and Fort Worth, Texas, along with another facility in Fort Walton Beach, Florida. Prosecutors said he paid more than $5.5 million in illegal kickbacks to persuade active-duty troops, veterans and relatives to undergo TMS therapy, even though they did not meet the eligibility requirements and, in many cases, never received the treatment.

DOJ sign on the edifice of the building.

Judge Leonie Brinkema said the legal issues surrounding a lawsuit over the Anti-Weaponization Fund remain “alive and kicking,” despite the Justice Department’s claim that the fund no longer exists. (Photo by Kevin Carter/Getty Images)

The Justice Department also alleged that Curry falsely portrayed himself as a physician, used the credentials of licensed doctors without their permission to file TRICARE claims and instructed staff members to create fake medical records supporting the billing.

According to authorities, Curry’s clinics submitted more than $26 million in fraudulent, false or kickback-related claims to TRICARE. The program paid out roughly $17 million on those claims.

Close up of the DOJ podium.

Justice Department attorneys asked a federal judge Friday to throw out a lawsuit challenging the Anti-Weaponization Fund, saying Attorney General Todd Blanche officially ended the fund on Aug. 2. (Photo by Andrew Harnik/Getty Images)

Prosecutors said Curry concealed and spent part of the proceeds on luxury hotel accommodations, an extravagant casino-themed celebration and the gold-plated Tesla Cybertruck, which was worth more than $100,000.

“This defendant exploited a vital health care program for active-duty servicemembers and their families, diverting taxpayer funds to pay for personal extravagances that included hotel stays, a casino-themed party and even a gold-plated Tesla Cybertruck,” Assistant Attorney General Colin M. McDonald said.

U.S. Attorney Ryan Raybould said Curry “shamelessly preyed on the trust of servicemembers, veterans and their families.” He accused Curry of falsifying medical records, misappropriating doctors’ identities and filing fraudulent claims tied to illegal kickbacks.

Curry will be sentenced later and could receive up to 10 years in prison for each of the nine convictions. The final punishment will be set by a federal district judge after reviewing the U.S. Sentencing Guidelines and other relevant statutory factors.

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