Houston, Texas – In a shocking turn of events, a federal jury has delivered a guilty verdict against Dr. Warren Dailey, 68, on five counts related to health care fraud. This conviction comes after a three-day-trial, announced U.S. Attorney Kenneth Magidson.
The jury deliberated for approximately three hours this afternoon before finding Dailey guilty of conspiracy to commit health care fraud, two counts of false statements relating to health care matters, one count of conspiracy to pay and receive health care kickbacks, and one count of payment and receipt of health care kickbacks.
At trial, the jury heard that from approximately 2009 through 2012, Dailey was a physician specializing in family practice in Houston, defrauding Medicare by authorizing Medicare beneficiaries for home health care when such services were not needed.
The evidence at trial demonstrated Dailey conspired with a home health care owner in Houston and agreed to sign Medicare authorization forms certifying services in exchange for a monthly flat fee from the home health owner. Dailey signed hundreds of authorization forms for beneficiaries that would falsely certify the patients were homebound, that home health was medically necessary, and that the beneficiaries were under his care.
Medicare paid the home health owner approximately $913,620 for home health services Dailey referred.
U.S. District Judge David Hittner presided over the trial and has set sentencing for June 23, 2016. At that time, Dailey faces a maximum of 10 years in federal prison as well as a possible $250,000 fine.
Previously released on bond, Dailey was remanded to custody pending sentencing.
The charges are a result of the investigative efforts of the U.S. Department of Health and Human Services – Office of Inspector General, Office of Investigations, and the FBI. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Defendant: Dr. Warren Dailey
Criminal Charges: Conspiracy to commit healthcare fraud, two counts of false statements relating to healthcare matters, one count of conspiracy to pay and receive healthcare kickbacks, and one count of payment and receipt of healthcare kickbacks.
City and State: Houston, Texas
Exact Date: 2016 (sentencing date)
Sentence or Outcome: Faces a maximum of 10 years in federal prison and a possible $250,000 fine.
Dollar Amounts: $913,620 (Medicare paid the home health owner for home health services referred by Dailey)
Related Federal Cases
- Cathy Harvill and William Harvill, Conspiracy to Commit Health Care Fraud, Texas 2014 · Kansas
- Jason Jarin, Medicaid Fraud and Illicit Transition Procedures, Texas 2023 · Texas
- Joshua Hippler, Wrongful Disclosure of Individually Identifiable Health Information, Texas 2014 · Texas
- Jose Antonio Caballero, Mortgage Fraud Scheme, Texas 2011 · Texas
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas 2012 · Kansas
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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