Houston Clinic Owner Dempsey Spears Charged in $4M Medicare Fraud

HOUSTON – Houston resident Dempsey Spears, 47, has been nabbed for his alleged role in a $4 million Medicare fraud and identity theft scheme, according to U.S. Attorney Nicholas J. Ganjei.

Spears, the owner of Transitional Life Counseling and Consultation in Texas City and Spears Community Services in Mesquite, made his initial appearance before U.S. Magistrate Judge Richard Bennett. A federal grand jury unsealed a nine-count indictment against him on September 23 following his arrest.

The charges claim that from 2016 to 2024, Spears submitted false claims to Medicare for psychotherapy services never provided. He is accused of billing under the names of seven licensed clinical social workers after they resigned and submitting claims for deceased beneficiaries.

From 2016 to 2023, Spears allegedly billed Medicare approximately $4 million in fraudulent claims, reaping about $1.5 million. If convicted, he faces up to 10 years in federal prison on each health care fraud count and an additional two years for aggravated identity theft.

The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services – Office of Inspector General led the investigation, with Assistant U.S. Attorney Kathryn Olson prosecuting the case.

An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence. Spears is presumed innocent unless convicted through due process of law.