WHAT YOU NEED TO KNOW
  • A jury convicted Kevin Curry, 64, of nine counts tied to a $26 million Tricare health care fraud scheme.
  • Tricare paid Curry $17 million for TMS claims involving services patients never received or were ineligible for.
  • Prosecutors said Curry funded luxuries including hotel stays, a casino themed party and a $100,000 gold plated Tesla Cybertruck.
  • Each count carries a maximum penalty of 10 years, and four agencies joined the Justice Department investigation.

A Texas man has been convicted of defrauding the federal government of $26 million through a scheme involving health care fraud, kickbacks and money laundering.

The operation helped finance a lavish lifestyle that included a $100,000 gold plated Tesla Cybertruck.

Kevin Curry, 64, of Frisco, Texas, was found guilty last week for his role in the scheme targeting Tricare.

Curry is a Licensed Professional Counselor who operated three purported mental health clinics in Texas and Florida.

Tricare is the War Department’s health program serving troops and their families. According to the Justice Department, Curry billed the program for transcranial magnetic stimulation therapy, commonly identified as TMS.

The claims covered services that troops and their family members either never received or were not eligible to receive. Curry nevertheless submitted those claims to Tricare and sought federal payments for them.

The Justice Department said Curry directed employees to fabricate medical records that could be used as supposed proof of services. He then submitted those records to Tricare while billing more than $26 million in “false, fraudulent and kickback-tainted TMS claims.”

Tricare ultimately paid Curry $17 million, according to the Justice Department.

Following recent reports that Congress is considering a nationwide voter ID requirement for federal elections, do you support requiring voters to show identification before casting a ballot?

By completing the poll, you agree to receive emails from Common Defense, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

Authorities said Curry used the money to finance his lavish lifestyle rather than provide the legitimate health services represented in the claims.

“This defendant exploited a critical health care program serving active-duty service members and their families, diverting taxpayer dollars to bankroll personal luxuries ranging from hotel stays to a casino-themed party and even a gold‑plated Tesla Cybertruck,” National Fraud Enforcement Division Assistant Attorney General Colin McDonald said in a release.

“Such conduct is an affront to the military community and the American public.”

The spending described by McDonald included hotel stays and a casino themed party. The gold plated Tesla Cybertruck cited by the Justice Department was valued at $100,000.

A jury convicted Curry of three counts of health care fraud and three counts of offering and paying illegal kickbacks. He also was convicted of three counts of “engaging in monetary transactions in criminal derived property.”

That produced nine guilty counts tied to the scheme and its proceeds. Each individual count carries a maximum penalty of 10 years.

“Kevin Curry shamelessly preyed on the trust of service members, veterans, and their families, siphoning millions from Tricare through lies and coercion,” U.S. Attorney Ryan Raybould said in a statement.

“This conviction sends an unmistakable message that those who manipulate our military community and defraud federal healthcare programs will face the full force of federal prosecution.”

The investigation brought together the Defense Criminal Investigative Service and the Federal Bureau of Investigation.

The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Veterans Affairs Office of Inspector General also participated, along with the Justice Department.

The evidence described by the Justice Department centered on false billing, fabricated documentation and kickbacks connected to TMS services.

It also traced the gap between the more than $26 million billed to Tricare and the $17 million the program paid Curry.

The conviction followed the jury’s consideration of Curry’s operation of the three purported clinics and the claims submitted through them.

Federal prosecutors secured guilty verdicts across all three charged categories, each carrying the possibility of substantial prison time.