Nearly 50 Charged in Texas in National Health Care Fraud Takedown

HOUSTON, Texas—Twenty-two cases were announced in Texas as part of local efforts targeting health care fraud. The cases include alleged hospice fraud, kickbacks, Medicare and Medicaid fraud schemes involving medically unnecessary durable medical equipment (DME) and more.

The charges filed in the Southern District of Texas (SDTX) federal court are part of the Department of Justice’s 2025 national health care fraud takedown.

“Americans rely on Medicare for needed treatments and life-saving care,” said United States Attorney Nicholas J. Ganjei. “Those that bilk this fund to unlawfully enrich themselves are ultimately stealing from the taxpayer and damaging public confidence in our health system. Today’s takedown is a reminder to would-be medical fraudsters that the Department of Justice is always standing guard over the public fisc.”

One of the largest cases included three individuals for their alleged roles in a $110 million hospice fraud and kickback scheme. The charges allege Dera Ogudo, 39, and Victoria Martinez, 35, both of Richmond, Texas, operated a hospice company, United Palliative & Hospice Company (UPHC), that misled vulnerable elderly adults about what services were being billed to their Medicare and Medicaid plans. According to court documents, UPHC Medicare and Medicaid beneficiaries and/or their family members believed they would be receiving palliative or home health services. In truth, these patients were enrolled in hospice services but were not actually terminally ill as Medicare and Medicaid requires, according to the charges. 

In relation to the scheme, Carlos Munoz, 57, Richmond, is charged by information. Ogudo allegedly paid Munoz, a medical doctor, kickbacks and bribes to certify and re-certify Medicare and Medicaid patients for hospice services.

Prosecutors with the Department of Justice’s Health Care Fraud Strike Force also filed charges against several more individuals in this district with assistance from SDTX.

Other cases involve fraudulent schemes for kickbacks or billing Medicare for medically unnecessary genetic tests or footbath drugs, durable medical equipment, conspiracies to unlawfully distribute and dispense controlled substances, some involving diversion onto the black market or in connection with the operation of pill-mill pharmacies. Those charged in this district also include residents of Houston, Richmond, League City, Rosharon, Sugar Land, Katy, Pearland and Manvel as well as U.S. citizens from Florida, Indiana and Georgia.

“This record-setting health care fraud takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake—this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”

All the cases are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in intended loss and over 15 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. The United States has seized over $245 million in cash, luxury vehicles and other assets in connection with the takedown.