Houston Clinic Owner Spears Busted in $4M Medicare Scam

HOUSTON – Dempsey Spears, 47, of Houston, is facing federal charges after allegedly orchestrating a brazen $4 million Medicare fraud scheme, bilking the system with claims for psychotherapy services that never happened. The arrest, announced by U.S. Attorney Nicholas J. Ganjei, comes after a grand jury returned a nine-count indictment on September 23rd, only unsealed upon Spears’ recent arrest.

Spears owned and operated two mental health clinics in Texas: Transitional Life Counseling and Consultation in Texas City and Spears Community Services in Mesquite. The indictment details a scheme spanning from 2016 to 2024, where Spears allegedly continued to bill Medicare even after seven licensed clinical social workers resigned from Transitional Life Counseling and Consultation. This isn’t just about bad business; it’s a calculated effort to siphon funds from a system designed to help those in need.

The feds say Spears wasn’t picky about who he billed either. Court documents reveal claims were submitted for services purportedly rendered to Medicare beneficiaries who were, at the time of the alleged treatment, already deceased. The sheer callousness of the operation is staggering. From 2016 to 2023, Spears allegedly submitted around $4 million in fraudulent claims, pocketing approximately $1.5 million before the scheme unraveled.

Spears made his initial appearance before U.S. Magistrate Judge Richard Bennett. If convicted on each count of health care fraud, he’s looking at up to 10 years in federal prison per count. Adding insult to injury, an additional two years loom for aggravated identity theft, to be served consecutively to any other sentence handed down. And don’t forget the potential for a $250,000 maximum fine.

The investigation was a joint effort between the Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorney Kathryn Olson is leading the prosecution. This case serves as a stark reminder that those who exploit healthcare systems for personal gain will be pursued relentlessly.

It’s worth noting this matter occurred on the indicated date but wasn’t publicized immediately due to the recent government shutdown. The press release was made available only upon the return to normal government operations. An indictment is a formal accusation, and Spears is presumed innocent until proven guilty through due process of law – but the evidence, as presented, paints a grim picture of calculated fraud.

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