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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

FOR IMMEDIATE RELEASE
Wednesday, March 30, 2016

Jury Convicts Doctor of Home Health Care Fraud

HOUSTON – A federal jury sitting in Houston has returned guilty verdicts against Dr. Warren Dailey, 68, on five counts related to health care fraud following 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 and defrauded 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 here 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.

Topic: 
Healthcare Fraud
Updated April 1, 2016