You are here

Justice News

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

FOR IMMEDIATE RELEASE
Friday, February 22, 2019

Texas Doctor and Hospital Owner Convicted in $20 Million Healthcare Fraud Scheme

HOUSTON – A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.

Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Dayakar Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During trial, the jury heard evidence that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary, not provided or both and then billed at Red Oak Hospital at a higher reimbursement rate.

Additionally, Narang and his co-conspirators falsified home health patient assessment form documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna. Moparty also also instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact, the patients never received services from Red Oak and the other entities.

At trial, patients consistently testified that they had merely but a Groupon for weight loss shots. However, after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. Health care benefit programs paid Red Oak Hospital approximately $3.2 million. Moparty then covertly paid Narang approximately $3 million to various corporate entities Narang owned.

Narang and MoParty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.

Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.

The FBI and Office of Personnel Management – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tina Ansari and Trial Attorney Drew Pennebaker are prosecuting the case.

Topic(s): 
Health Care Fraud
Component(s): 
Updated February 22, 2019