NEWS 8 INVESTIGATES
DALLAS — A Dallas dentist has agreed to pay the state and federal government $1.2 million to resolve allegations that he submitted false orthodontic claims under Medicaid.
Dr. Richard Malouf, former majority owner of All Smiles Dental Center, allegedly submitted false Medicaid claims between 2004 and 2007.
News 8 reported on Malouf's lavish homes and two multimillion dollar corporate jets. Malouf did not admit any wrongdoing or liability in his settlement.
He is one of several orthodontists highlighted for multimillion dollar billings under Medicaid.
Eleven dental operations statewide have had their state funds suspended for credible allegations of fraud in billing the Texas Medicaid Orthodontics program. This follows a 10-month News 8 investigation of medicaid orthodontics in Texas, which found the state spends more on braces for poor children than the rest of the nation combined.
"Something's wrong and I want my money back," said Texas Sen. Jane Nelson (R-Flower Mound). Nelson called a hearing to look into how Texas spent $424 million on orthodontics under Medicaid between 2008 and 2010.
Medicaid does not cover cosmetic orthodontics, but a News 8 investigation found that tens of thousands of children received procedures at taxpayer expense.
"What we really want is, we don't want people to do it," said Texas Sen. Bob Duell (R-Rockwall).
