Tariq Mahmood Ordered to Pay $1.2M in Health Care Fraud

Tariq Mahmood, the Cedar Hill, Texas doctor convicted of orchestrating a sprawling health care fraud scheme, has been slapped with a $1,223,414.50 civil judgment after defrauding Medicare and Medicaid. The order, issued Oct. 28, 2016 by U.S. Magistrate Judge K. Nicole Mitchell in the Eastern District of Texas, holds Mahmood accountable for 85 false claims funneled through rural hospitals he owned and operated.

In July 2014, a federal jury wasted no time convicting Mahmood following a four-day trial before U.S. District Judge Michael Schneider. He was found guilty of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft. The charges stemmed from a scheme that weaponized his medical facilities to bilk federal health programs—crimes for which he had already faced criminal indictment on April 11, 2013.

After the criminal conviction, the U.S. Department of Justice moved swiftly under the False Claims Act, arguing that Mahmood was legally barred from denying liability due to his prior convictions. The civil case, United States of America v. Tariq Mahmood, Case Number 6:15-cv-948, resulted in summary judgment in favor of the government. No trial was needed—his guilt in criminal court sealed his fate in civil court.

The judgment breaks down to $288,414.50 in damages and $935,000 in civil penalties—the maximum allowed by law for each of the 85 false claims. Every dollar reflects a fraudulent billing event, each one a betrayal of public trust and a drain on taxpayer-funded health programs meant for the vulnerable.

Acting U.S. Attorney Brit Featherston made it clear: the Eastern District of Texas won’t tolerate rip-offs of federal health systems. “The Department of Justice and the United States Attorney’s Office for the Eastern District of Texas aggressively prosecute health care fraud, both criminally and civilly,” Featherston said. “When our national programs are defrauded, the public wants its money back. Our office is committed to recovering those public funds.”

The criminal investigation was a joint hammer blow from the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorneys Joshua Russ and James Gillingham handled the civil prosecution, ensuring the government slammed the door shut on any escape from financial accountability.