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Local Businessman and Office Manager Convicted of $3.5 Million Health Care Fraud Scheme
Waco, TX – A jury has returned guilty verdicts against 55-year-old Daniel Thomason Smith, owner of DTS Medical Supply Company, and 45-year-old Kathleen Marina Kelly-Tuorila, office manager, in connection with an estimated $3.5 million Health Care Fraud scheme.
The jury convicted both defendants of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft, and eight counts of aiding and abetting false statements related to a Health Care matter.
According to evidence presented during trial, between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Robin Renee Haigler, who pleaded guilty to the conspiracy charge in August 2015, on a commission basis to recruit customers primarily in the Waco area. Kelly-Tuorila used the collected customer information from Haigler to generate and submit fraudulent claims for reimbursement to Medicaid and Medicare for powered wheelchairs.
Evidence also revealed that even though DTS billed for powered wheelchairs, they delivered less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
Following the reading of the verdict, U.S. District Judge Alia Moses remanded Smith and Kelly-Tuorila into federal custody. Both face up to ten years imprisonment on the conspiracy count, up to ten years imprisonment on the aiding and abetting Health Care Fraud count, up to two years in federal prison for each aggravated identity theft count, and up to five years in federal prison for each false statement count.
Smith and Kelly-Tuorila’s sentencing has yet to be scheduled. Haigler, who remains on bond pending sentencing in September, faces up to ten years in federal prison.
The investigation was conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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