Texas Man Sentenced for Major Medicare Fraud Scheme

A recent court decision sentenced a Texas resident to 90 months in prison for orchestrating a nearly $60 million Medicare fraud scheme involving durable medical equipment (DME). Patrick Cassells, 65, from Fulshear, Texas, managed three DME businesses and falsely reported the ownership of one company on a Medicare application. He facilitated illicit payments to accomplices to obtain fictitious doctor’s orders, which were falsely claimed as medically necessary. Consequently, Medicare was billed over $59.9 million, with payments exceeding $27 million.

In June 2024, Cassells confessed to conspiracy to commit health care fraud in a Southern District of Texas courtroom. Aside from his prison sentence, he must repay $25.4 million and forfeit specific assets, including vehicles and properties in Houston. This announcement was made by officials such as Assistant Attorney General A. Tysen Duva and U.S. Attorney Nicholas J. Ganjei, marking a significant enforcement action in the fight against Medicare fraud.

The investigation was spearheaded by the Health and Human Services Office of Inspector General, the FBI's Houston Field Office, and the Medicaid Fraud Control Unit of Texas. Prosecutors from the Justice Department's Fraud Section led the legal proceedings, leveraging the Health Care Fraud Strike Force's efforts. Since 2007, the Strike Force has been instrumental in prosecuting over 6,200 individuals for fraudulent claims exceeding $45 billion. The Centers for Medicare & Medicaid Services, together with the Inspector General, continue to enforce regulatory compliance to combat health care fraud. Further details are available through Justice Department channels.