Dr. Richard Malouf, founder of All Smiles Dental Centers in Texas, has made the news a lot over the last two years. Much of which has involved charges of Medicaid Fraud, indications of bribery, and his infamous home water park in an affluent neighborhood of Dallas and 2 private jets.
Last week, (January 31, 2014) Dr. Malouf was back in court, this time in front of the bankruptcy judge. Under an earlier Agreed Order (Doc 637) Malouf agreed to abandon the property to the state, with the “provision that a neutral third party” would serve as Special Master of the bankruptcy estate.
Apparently Malouf was more concerned about the proper functioning of his waterpark than what incriminating evidence might be on the computer servers he happily “abandon” to the state of Texas. He recently tried to block the State of Texas access, but in an Order issued January 31, 2014 (Doc 762) a judge “clarified” the previous Agreed Order telling Malouf, tough titty.
Ok, so the judge didn’t say exactly that but did say:
“To avoid further doubt, the Court further clarified that the property was abandoned with this Court’s approval to The State Of Texas and simply appointed the Special Master to provide fair access and control, but not as owner of the property.”
“It was the Debtor’s prerogative to decide what to do with the property. The Debtor decided and this Court approved abandonment. The Malouf entities agreed to the abandonment.”
I bet you don’t see this over on the TDMR website!
Basically Malouf bamboozled Valor Equity into purchasing his clinics. After the purchase they learned they couldn’t maintain the revenue flow without fraudulent Medicaid billing. (Dr. Richard Malouf sold 72% of his All Smiles Dental Centers to Valor Equity, based in Chicago)
Do I have pity on their poor souls, ABSOLUTELY NOT!A whole lot of LMAO going on here.
In May 2012 All Smiles, Inc. filed for bankruptcy after Texas Medicaid began cutting payments because of “excessive” and “inappropriate” orthodontic treatment.
Two months prior—in March 2012—All Smiles, Inc (Valor 72% and Malouf 28%) finalized a Settlement Agreement with the state Texas. They agreed to sign a Corporate Integrity Agreement and pay a mere $1.2 million. (Which I think was just shameful!)
In August 2013 South Texas Dental bought All Smiles.