HOUSTON – In a stunning blow to the city’s healthcare community, Rene Fernandez Gaviola, 68, was today sentenced to 120 months in federal prison for his pivotal role in a $6 million Medicaid fraud scheme. The Houston dental clinic operator, who ran Floss Family Dental Care, admitted guilt on Jan. 26 after submitting fraudulent claims for pediatric dental services that he never provided.
Chief U.S. District Judge Randy Crane ordered Gaviola to pay $4,908,957.89 in restitution to Medicaid and a personal money judgement of $2,996,092. The court highlighted that Gaviola involved his son in the scheme, who was unlicensed, and despite having assets in the Philippines totaling $2 million, Gaviola failed to pay back any restitution.
From 2018 until April 2021, Gaviola’s clinic submitted claims for services they did not render, including cavity fillings by unlicensed individuals. He also employed his son without a license and paid kickbacks to marketers to attract Medicaid-insured children for dental services. The scheme saw nearly $6.9 million billed to Medicaid with over $4.9 million paid.
Gaviola’s co-conspirator, Mia Diaz, 48, of Cleveland, was previously sentenced to 21 months imprisonment followed by three years of supervised release. Following his sentencing, Gaviola was taken into custody and will remain until transferred to a U.S. Bureau of Prisons facility.
The investigation was conducted by the FBI, Texas Attorney General’s Medicaid Fraud Control Unit, and the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorneys Kathryn Olson and Lauren Valenti prosecuted the case.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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