Xerox Pays $236 Million to Settle State of Texas Dental Fraud Case Legal Team: Whistleblowers Dr. Christine Ellis, Madelayne Castillo, Yarubi Morales and others Are Vindicated

Xerox Pays $236 Million to Settle State of Texas Dental Fraud Case
Legal Team: Whistleblowers Dr. Christine Ellis, Madelayne Castillo, Yarubi Morales
and others Are Vindicated

AUSTIN, Feb. 20, 2019 – The $236 million settlement of the State of Texas’ Medicaid fraud
claims against Xerox Corp. business units vindicated whistleblowers Dr. Christine Ellis,
Madelayne Castillo, Yarubi Morales and other whistleblowers, their legal teams said today. The
settlement is the largest recovery ever in a healthcare fraud recovery suit in Texas for Medicaid
related claims.

The State’s lawsuit alleged that Xerox violated the Texas Medicaid Fraud Prevention Act and
“rubber-stamped” prior authorization requests by unqualified clerical employees, allowing “vast
numbers” of orthodontic procedures for children whose condition did not meet Medicaid criteria
for treatment. The company, formerly known as Affiliated Computer Services, Inc., before Xerox
acquired it, also was accused of making false statements or representations in Medicaid filings
with the state.

Dr. Ellis, an orthodontist in Dallas, testified before a congressional committee in Washington in April 2012 about alleged Medicaid fraud in orthodontic billings by Texas dentists.

Ms. Castillo was an employee of the now-defunct All Smiles dental chain and West Texas Dental. Ms. Morales was a former employee of the now defunct All Smiles dental chain and Rodeo Dental.

Dr. Ellis, Ms. Castillo, Ms. Morales and several other whistleblowers all filed suits approximately
two years before the State filed its suit. The State has acknowledged that the facts underlying its
suit are the same as those underlying the whistleblowers’ previous filings.

Xerox became the state’s Medicaid administrator in 2003. Between 2004 and 2012, Texas
expended approximately $1.1 billion on orthodontics under the Texas Medicaid program.
According to the State’s lawsuit, Xerox, and ACS, Inc. before it, repeatedly represented to Texas
Medicaid officials that their prior authorization system ensured proper predeterminations of
qualifications.

Ms. Castillo, Ms. Morales and several other whistleblowers who filed cases against ACS/Xerox
are represented by Rusty Tucker of the Law Offices of James R. Tucker, P.C. of Dallas and MikeTibbals of Dallas. Ketan U. Kharod, of Guerrero & Whittle, PLLC, of Austin, Charles S. Siegel
and Caitlyn Silhan, of Waters and Kraus, of Dallas, Daniel L. Hargrove, of the Hargrove Law Firm
of San Antonio, and James R. Moriarty, of the Law Office of James R. Moriarty of Houston
represent Dr. Ellis.

Charles Siegel of Waters and Kraus said, “Because of Dr. Ellis and other whistleblowers who
brought lawsuits against ACS/ Xerox, the State of Texas ultimately showed how Xerox and ACS,
Inc. deeply compromised the integrity of the Texas Medicaid program. They faced vicious legal
attacks in their courageous efforts to set the record straight.”

Rusty Tucker of the Law Offices of James R. Tucker, P.C. said, “Our legal team hopes this
settlement sends a strong message that companies that prey upon Texas families and defraud the
state will face the judgment of the courts. Companies who commit unlawful acts in violation of
the Texas Medicaid Fraud Prevention Act will be held accountable. Dr. Ellis, Ms. Castillo, Ms.
Morales and other whistleblowers who came forward should be recognized for helping expose this
massive fraud.”

The case is “The State of Texas v. Xerox Corporation, et al.,” Cause No. D-1-GV-14-000581 in
the 53rd Judicial District of Travis County, Texas.

CONTACTS:
Rusty Tucker, Law Offices of James R. Tucker, P.C. (214) 505-0097
Charles Siegel, Waters and Kraus (214) 357-6244
James Moriarty, Law Offices of James R Moriarty (713) 857-1212

AOL Accuses Dr. Richard Malouf of Gaming The Texas Judicial System

Everyone remember the Texas dentist, Dr. Richard Malouf, who sued nearly everyone in sight that had the gall to report or offer comment on the “House That Medicaid Built”?  The place got so big he had to purchase the house next door and he installed his own personal waterpark; dubbed here as 6 Flags Over Malouf.

The story won investigative reporter Byron Harris and WFAA a 2013 Edward R. Murror Award:

WFAA won a 2013 Edward R. Murrow Award for its investigation of Texas Medicaid fraud, including the allegation that Malouf used taxpayer money to build his personal waterpark. Texas law generally prohibits the seizure of one's home, even in the event of wrongdoing, but there is a loophole.
"If that home is purchased with stolen money, or that home is purchased based on money that has been earned by falsehood or deceit, then that home is not protected at all," attorney Jim Moriarity told WFAA.

Malouf sued a long list of folks, including actor Owen Wilson’s mom, who lived next door, for trespassing, invasion of privacy, and defamation which included America Online (AOL) for publishing the story.
Apparently Malouf , and his wife LeAnne find themselves in the 11th hour of trial without legal representation in his defamation suit which continues with AOL, Graham Wood and Candace Evans. 
AOL is basically calling “bullshit”, saying Richard and Leanne Malouf have a pool of a dozen or more attorney’s across Texas and should not need 4 months to hire another one.
I agree!
This is a must read! Enjoy!

PS. That is not the only system Mr. and Mrs. Richard Malouf gamed.  Just saying.

Malouf v AOL_Wood - Response to Motion for Continuance

What happened to Richardmalouf.com?

In February 2013, Dr. Richard Malouf of All Smiles and home waterpark fame started his own website, richardmalouf.com. Below is his press release about all the issues he was addressing.

• New Website Released for Dr. Richard Malouf of Dallas

Successful Dallas dentist and entrepreneur sets up own news portal at http://www.richardmalouf.com.

Amazingly, it’s gone poof!

His facebook page is barebones, so is his youtube channel.

• Richard Malouf Facebook - https://www.facebook.com/DrRichardMalouf
• Richard Malouf Youtube Channel - http://www.youtube.com/user/DrRichardMalouf

But no Richardmalouf.com.

Uh-Oh! Dr. Richard Malouf abandoned his computer servers! YIKES!

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!

Dr. Richard Malouf’s All Smiles Dental has been purchased by another “chain” in Texas–South Texas Dental

Bill Hethcock

Staff Writer- Dallas Business Journal

Email  | Twitter  | Twitter  | Google+

South Texas Dental, which operates family dental centers in Houston, Dallas, Fort Worth and San Antonio, has acquired the 12 offices of the All Smiles general dentistry practice in North Texas.

Financial terms of the transaction were not released.

Three of the offices are in Dallas, two are in Fort Worth, two are in Arlington and single offices are in Garland, Grand Prairie, Haltom City, Irving and McKinney.

Each of the acquired offices has been re-branded as South Texas Dental, and staffing levels and hours of operations will remain unchanged. Each office will accept Medicaid, CHIP and most insurance providers.

South Texas Dental representatives could not immediately be reached for comment.

South Texas Dental now operates 38 family dental centers. The centers are owned entirely by their dentist partners, who make all decisions involving patient care.

“This transaction allows us to acquire dental centers with an established base of satisfied patients,” Dr. Chad Park of South Texas Dental said in a press release. “We spent a great deal of time evaluating each center and patient charts before proceeding with the acquisition.”

I don’t know how much real time was spent “evaluating” each of Malouf’s clinics, but I bet they didn’t doing much digging or the bones would have surfaced.

“Ho” Down in Texas – James W. Orr, DDS Testifies for Antoine Dental Center

Background
Who can forget the reports by WFAA’s Bryon Harris, which spurred investigations in to orthodontic Medicaid Fraud by the State of Texas?
In the fall of 2011 and continuing today, The Texas Health and Human Services Commission (HHSC) Inspector General put Credible Allegation of Fraud (CAF) payment holds on a covey of dental clinics; some general dentistry and some orthodontic clinics.  

Deciding not to take this sitting down, a few of these highly suspect dentists decided to take it to court; appealing to the State Office of Administrative Hearings (SOAH).

Dr. Juan Villarreal, owner of Harlingen Family Dentistry, a Scientologist  and a former  member of Texas State Board of Dental Examiners (TSBDE) appealed the HHSC decision for his CAF payment hold.  In a ruling by the SOAH in October of 2012, Villarreal/Harlingen Family Dental’s payment hold was reduced from 40% to down to 4%.  The ruling for Harlingen was further upheld by an HHSC Administrative judge in January of this year (2013).  Villarreal also heads up Texas Dentists for Medicaid Fraud Reform (TDMR). 

The judge’s ruling in the Villarreal case, by the most part, was based on the testimony of one Dr. James W. Orr.  This favorable ruling no doubt was the impetus to others, like Antoine Dental Centers and M & M Orthodontics in appealing their CAF payment holds. 

One last thing, before we move on — WHAT is the HDL scoring index? Well, it is much like scoring some jurisdiction do to determine if one gets bail or not. A point for this, a point for that and if it totals up to be high enough, bam! You’re outta there. For orthodontics (braces and other appliances) children over age 12 AND have lost all their baby teeth can received services if their HDL score is 26 or higher. Like anything else there are exceptions, but this is the simple explanation.

Antoine Dental Center-Dr. Behzad Nazari
First up, for this series, is Dr. Behzad Nazari and Antoine Dental Center (ADC) vs. Texas Health and Human Services (THHSC) (SOAH docket no. 529-0997).  ADC was represented by Jose A. (Tony) Canales and Oscar X. Garcia. Robert (Bob) M. Anderton.  Many of these clinic suspected of fraud have hired dentist/attorney, Dr. Robert (Bob) Anderton, former American Dental Association president.

Dr. Behzad Nazari/Antoine Dental Center has been under a 100% (that is HUGE) CAF pay hold since March 28, 2012 totaling over $550,000.  On March 29, 2012 the Texas Attorney General’s Medicaid Control Fraud Unit (MCFU) opened an investigation into ADC. 

DA Craig Watkins in Contempt of Court–Richard Malouf fiasco

DALLAS — It's no secret that a Dallas Judge has cited District Attorney Craig Watkins for contempt in a case involving one of his biggest campaign donors.

But News 8 has learned the FBI began investigating Watkins 20 months ago in an investigation that included another campaign donation.

It was July 13, 2011. FBI agents came to Craig Watkins' 11th floor courthouse office with subpoenas and questions.

Part of the investigation: A $10,000 campaign donation from the wife of Dallas dentist Richard Malouf.

"They did come, and they asked to see all the files involved," assistant DA Rocky Jones told News 8.

The DA's office had previously conducted an investigation of Malouf which ended in a $46,000 settlement.

"They did take copies of several things," Jones said. "We didn't know what they took copies of."

News 8 has learned that in December 2009, Richard Malouf's attorney Gregory Shamoun presented Watkins with three campaign checks.

The largest — $10,000 — was from Leanne Malouf, Dr. Malouf's wife. After receiving the donation, Watkins was asked to come to Shamoun's office for a meeting.

Malouf was there, asking to talk about a criminal investigation in which he was the target. Watkins left the meeting immediately, his office saod.

Watkins' campaign returned the Malouf donation with a check drawn from his campaign funds.

What might surprise many voters is how much money goes to judges and district attorneys at Texas courthouses, and how often it happens.

"You have in Texas judges [who] routinely accept campaign contributions from people who are going to appear before them the next day," said assistant Dallas County DA Heath Harris.

Harris says it's up to judges and district attorneys not to let the donations sway their judgement.

"You have judges who take campaign contributions from lawyers. Lawyers are representing Joe Blow," Harris said.

"Joe Blow," Harris says, may have a case in the judge's court.

Shamoun, Dr. Malouf's attorney, was not available for comment.

The FBI doesn't talk about investigations.

According to The Dallas Morning News and the Associated Press, the FBI is investigating Watkins again for donations from another attorney.

Although there is nothing illegal about attorneys making donations to judges or district attorneys, some lawyers say the system itself needs to be investigated.

E-mail bharris@wfaa.com

Texas AG Greg Abbott disappointed in Dallas DA Craig Watkins’ “sweetheart deal” with Richard Malouf

Sweethearts?

A good example of why you can’t count on local DA’s to enforce the laws!

---

Bio | Email
WFAA
Posted on March 5, 2013 at 10:05 PM
Updated today at 9:54 PM

Dallas County District Attorney Craig Watkins accepted — then returned — a 2009 campaign donation from the wife of Medicaid dentist Dr. Richard Malouf, who was under investigation at the time by Watkins' office for allegations of Medicaid fraud.

The Texas Attorney General’s Office says Watkins’ settlement of the case was a "sweetheart deal."

Dallas dentist Dr. Richard Malouf is the founder and former owner of All Smiles Dental Centers in Dallas. From 2008 through 2010, All Smiles billed the state of Texas more than $20 million for putting braces on children under Medicaid.

For the past five years, federal, state and local officials have been investigating Malouf for Medicaid fraud.

The Dallas County DA's office was one of those doing the investigating. Watkins' office received a criminal referral from the AG about Malouf.

In 2009, Malouf's wife, Leanne, wrote Craig Watkins — who was running for re-election as Dallas County DA — a $10,000 campaign donation, News 8 has learned.

Soon after, Watkins was asked to attend a meeting at the office of one of Malouf's attorneys, according to Heath Harris, the first assistant in the DA's office. News 8 wanted to talk to Watkins himself about the sequence of events. His office said he was ill and unavailable. Heath Harris spoke on behalf of Watkins.

Dallas District Attorney Craig Watkins Letter to Stephanie Leanne Lott Malouf Jan 5 2010 Redacted

At the meeting at the attorney's office, Heath Harris said, Watkins was introduced to Malouf.

Malouf wanted to talk to Watkins about his criminal case, Heath Harris said.

"This Malouf person is trying to talk to him about a criminal matter," Heath Harris told News 8. "It's my understanding he [Watkins] immediately shuts him down. And he leaves."

Watkins returned $10,000 to Leanne Malouf with a cashier's check in January, 2010.

Texas Dentists For Medicaid Reform now subject of WFAA-TV report

WFAA’s Byron Harris now on the tail for Texas Dentist’s for Medicaid Reform Fraud in his latest News 8 report.

 

 

 

 

 

by BYRON HARRIS
Bio | Email
WFAA
Story TimelineClick to open timeline

Texas Dentists for Medicaid Reform has all the trappings of a public interest group: The State Capitol is featured prominently on its website; the Texas star is in its logo; the word "reform" is in its title.

But TDMR, as it calls itself, acts like a private interest group.

Last month, the organization held a dinner at the Omni Southpark Hotel in Austin. TDMR's website invited the public, but the event was not public after all.

An e-mail informed News 8 we would not be allowed to attend.

Board member Dr. Juan Villareal would not disclose who the organization's donors are. "Donors can be anonymous, and a lot of them don't want their names mentioned," he told WFAA, adding that TDMR does not have members, only donors.

"We basically take donations from people who are interested in our cause," Villareal said.

So what is the cause? "Due process" is a phrase overheard in the hallway outside the dinner venue. TDMR offered News 8 an interview with a lawyer — presumably on its payroll — to explain the term "due process."

A look at the name tags outside the dinner show many of of the invited guests have had their Medicaid payments suspended under a doctrine called Credible Allegations of Fraud (CAF). Under CAF, physicians and dentists can have their Medicare or Medicaid payments withheld if the government believes they've committed fraud.

Dr. Villareal had $1.2 million in Medicaid dental payments to his clinic, Harlingen Family Dentistry, suspended under CAF. He appealed his case and won in an administrative hearing, but says he still hasn't received his money.

TDMR's board consists of Villareal, his partner, and another dentist who was charged with Medicaid fraud.

TDMR's website traces to an office labeled "SLS Worldwide Transportation" at a strip mall in Austin. The same address is also home to a website for Dr. Richard Malouf, a Dallas dentist who's being criminally investigated for fraud by the state of Texas.

And the SLS Limousine office is home to the website of Harlingen Family Dentistry, Villareal's dental office.

"TDMR is not so much about the money, as it is about denying due process" Villareal said. "That's the main concern."

"Due process" may summarize Medicaid reform for TDMR's donors.

But Dr. Morna Staffel said that doesn't speak for a Medicaid system she and many other dentists wrestle with every day.

"I don't think there is a group that's speaking out for the legitimate and the ethical dentists... either general dentists or pediatric dentists," she said.

Dr. Staffel's office regularly has to re-do work done by some of the dental chains supporting TDMR.

"Yesterday, in fact, I had to do dental treatment on three different children who'd been treated at another dental clinic during a 12-month period," Dr. Staffel told News 8. "Eighty percent of the restorations that had been placed either were improperly placed, or done incorrectly, or failing."

That work will need to be redone, she says, but getting Medicaid to pay for it is a slog.

"It's very time-consuming. It requires a great deal of my office staff time." Dr. Staffel said. "In the end, if we don't do the treatment, the child gets hurt."

She said her office often ends up doing the work for free.

Dr. Staffel wants parents — even those on Medicaid — to know they have a choice in dentists. And if they feel their children are not getting treated properly, they can go elsewhere.

So who really is Texas Dentists for Medicaid Reform? Thirty-nine dental chains have had their Medicaid payments withheld under Credible Allegations of Fraud.

As for many other Texas dentists, reform means something else.

E-mail bharris@wfaa.com

Related:

• More from News 8 Investigates

Judge Sally Montgomery and Richard J. Malouf birds of a feather? Neither seem to care too much about the law.

Judge Sally Montgomery, ranked one of Texas’s worst judges in 2006, still sucks.

Below is a story that should scare the hell out of every American. A Texas judge doesn’t care about the laws, she says exactly that. Sally is trying to silence free speech and especially whistleblowers.

It is an undisputable fact that if people like Byron Harris, Candace Evans, Jim Moriarty, myself and others weren’t talking about this scandal in dentistry and dental clinics like Malouf’s All Smiles clinics, where do you think we would be right now?

Would anyone be paying attention in Austin?

Just last week, at a hearing on Public Health Texas Rep. Lois Kolkhorst, said, ‘thank goodness for the Bill of Rights, because that’s really what brought it to a head.’

But for Harris and WFAA’s reporting there would be no joint task force in Texas and taxpayers would still be bleeding millions of dollars by the day.

Would anyone be paying attention in Washington?

In March, at a hearing in DC, it was recognized that it took a reporter in Texas to uncover the massive orthodontic fraud.

Would anyone be paying attention to the child abuse happening behind closed doors in these dental offices. That answer is NO!

Evidently, Judge Sally Montgomery of Dallas County Court, is not too fond of our “Bill of Rights.” She doesn’t care too much about Texas’s Citizens Participation Act either, a law passed unanimously in 2011.

It’s clear time has come to put Sally Montgomery out to pasture, and elect someone else to Dallas County Court No. 3.

 

 

 

Case against Candy Evans, Laura Wilson and WFAA gets nuttier thanks to power-hungry judge

 

By Teresa Gubbins

10.26.12 | 10:03 am

The lawsuit filed against real estate reporter and CultureMap contributor Candy Evans, Channel 8 WFAA and Laura Wilson by Strait Lane residents Richard and Leanne Malouf has moved into mediation, a process that begins on Friday.

Malouf, a dentist who's been accused of Medicare fraud, and his wife, Leanne, filed a lawsuit October 16 alleging that Evans et al trespassed on their property; invaded their privacy; and defamed, libeled and slandered them after publishing photos of the Maloufs' backyard with its ongoing construction of a massive waterpark.

"The parties have agreed to mediate the case, and we'll begin that process [Friday]," says Larry Friedman, who is representing Evans.

​The Maloufs filed a lawsuit October 16 alleging that Evans, Laura Wilson and WFAA trespassed on their property; invaded their privacy; and defamed, libeled and slandered them.

On October 19, Judge Sally Montgomery of Dallas County Court at Law No. 3 issued a temporary restraining order for two weeks, forbidding anyone from stepping onto the Maloufs' property. That put the case on hold and gave the parties an opportunity to mediate a solution rather than going back to court.

Representative Lois Kolkhorst tips hat to those reporting on the dental Medicaid fraud in Texas

Dedicated to all those who are not deterred from speaking out

During a Texas Public Health committee meeting on October 15, 2012, committee Chair Rep. Lois Kolkhorst, tipped her hat to the public, for speaking out about the massive amount of dental Medicaid fraud taking place in Texas.

“…This wasn’t a huge issue on this committee or others would have maybe been a little more privy to it—it took a lot of news reporting for us to really, and thank goodness for the Bill of Rights, because that’s really what brought it to a head, “ s

“…I want to tip my hat to Channel 8 and WFAA in Dallas, certainly the Texas Tribune has given this a lot of coverage…”

Without the public and company insiders speaking out, without Mr. Harris at WFAA, listening, Representative Kolkhorst and the Public Health committee would still be in the dark.. And I suspect the Texas Inspector General and Attorney General’s office would still be turning a blind eye to the red flags they found in 2008.

However, since Richard Malouf -  under fraud investigation himself - filed a SLAPP lawsuit last week against WFAA TV; investigative reporter, Byron Harris; Mary C. Jones and his neighbor, Laura Wilson, I’m guessing he’s not as appreciative of the “reporting” and our “Bill of Rights.” 

Note, Rep. Kolkhorst said it took a “lot of news reporting” to get their attention. So don’t quit; keep blowing those whistles and beating your drums. Don’t be intimidated by even the sleaziest of those who may try to twist the truth.

On a side note: I don’t live in Texas and I don’t have a clue who Lois Kolkhorst is. But I would vote for her over the two loons we have running for President based on the October 15, 2012 hearing alone.

Go Lois!

Richard Malouf’s Six Flags Over Malouf WaterPrik Park–Update!

 

 

 

by BYRON HARRIS

Bio | Email

WFAA
Posted on October 8, 2012 at 10:03 PM
Updated today at 10:03 PM

DALLAS — There's a different kind of skyscraper going up in one of Dallas' most exclusive neighborhoods on Strait Lane. Mavericks superstar Dirk Nowitzki, former Rangers owner Tom Hicks and even Mayor Mike Rawlings live close by.

This "skyscraper" is really a three-story water slide and lazy river in the backyard of Texas' most famous dentist. 

Dr. Richard Malouf made millions from putting braces on children under Medicaid. 

In a whistleblower lawsuit, the Texas attorney general says much of Dr. Malouf's work was fraudulent. All Smiles Dental Clinics — which Malouf founded and still owns part of — filed for bankruptcy earlier this year.

Work on the water park and an addition to Malouf's huge chateau on Strait Lane continues.

A turquoise pigtail of a water slide curls over the backyard and peeks through neighbors' trees. A five-foot wide, concrete-lined Lazy River water feature is taking shape below.

But a News 8 investigation finds the Bentley-driving Malouf has a history of being sued for failing to pay his bills.

Medicaid Fraudster’s “WaterPik Park” being installed

I loved Candy’s name for the Malouf Waterpark going in at 10711 Strait Lane, in Dallas, Texas. Candy, help yourself to anything ya like here at the blog…

Tuesday, August 21, 2012

Dentist charged with fraud is getting water park installed in backyard

by Candy Evans of Candy's Dirt

DALLAS — "Texas Drills Down on Medicaid Dental Fraud” (subscription required) was the headline from the Wall Street Journal. What do they mean by that? Why, maybe a blast from the past biz practices of people like Richard Malouf who is putting in a water park that one reader thinks we ought to christen “WaterPik Park” over on Strait Lane. His gates were wide open on Sunday as trucks heaved in the equipment, which is now sitting right in the front yard of what was once 10711 Strait Lane.

That is, as you know, the Family Sports World.

If any of you were as surprised as I was over this Medicaid deal — I mean, I know what Medicaid reimburses physicians for medical care and it is barely enough to cover the exam table paper in the office — it seems as though the problem stemmed from a 2007 civil lawsuit (that really started in 1993) that made the state increase reimbursement rates for Medicaid dental services:

“The suit, a federal class action filed by parents in 1993 against state officials, alleged Texas was failing in its duty to ensure that children on Medicaid received proper preventative care in dental and other areas. Eligibility for Children’s Medicaid in Texas is pegged to income. In 2007, Texas legislators agreed to settle, conceding that there was a dwindling number of doctors and dentists in the state willing to treat Medicaid patients and agreeing to increase Medicaid-reimbursement rates. A 2012 report by the House Committee on Oversight and Government Reform offered case studies in various states of supposed Medicaid abuse; it cited dental services in Texas as a particular problem area. By 2010, according to the report, Texas’ Medicaid program was spending more on braces than the other 49 state Medicaid programs spent combined on such orthotics.“

This is just what Byron Harris reported, and I wonder why the WSJ doesn’t mention his report. It has also, like always, resulted in the loss of services for kiddos who really need it: All Smiles Dental Professionals P.C., has shuttered 13 orthodontic offices in the Dallas area because of the investigation, leaving an estimated 12,000 Medicaid-eligible patients without care.

But hey, WaterPik Park is coming! Look at those slides just waiting to be installed! It’s only 6.5 million gallons of water, and Texas sure has plenty of that … right?

In all fairness Malouf did take his business model from the DeRose family in Pueblo, Colorado… and they have their own footballs stadium and city for that matter…

Who said you can’t make any money seeing to the oral health of our nations poor.

WFAA-TV Byron Harris reports:

WFAA

Posted on July 12, 2012 at 10:30 PM

Updated today at 9:37 AM

DALLAS - The Texas Medicaid dental scandal is moving into a new phase. A construction phase.

One of the dentists charged with fraud in billing Texas taxpayers tens of millions of dollars for unneeded braces on children is in a new spurt of expanding his mansion.

He's building a water park on the property.

It's happening out of public sight, among the high-dollar homes on Dallas' glitzy Strait Lane. All the homes are big here, but the home of dentist Richard Malouf, former majority owner of All Smiles Dental Centers, is even bigger.

Plans for the expansion are on file with the Dallas Planning Commission.
"There's going be a gymnasium, a rock climbing wall," said real estate columnist Candy Evans. "There's plans for a bowling alley upstairs. There's going to be exercise rooms."

The complex, which began taking shape six years ago, began with one chateau. Malouf's Medicaid dental empire was expanding, and he sold a major share to a private equity fund.

Now he's sinking his earnings into a new mansion next door, along with a private Schlitternbahn in the back acreage, along with a second swimming pool to match the one at the original mansion.

All this is happening as two suits charge Malouf with massive fraud, brought by the Texas Attorney General and private attorneys under the False Claims Act.
Attorney Jim Moriarty is one of a consortium of attorneys in the action, led by Waters & Craus in Dallas. They say samples of Malouf's records show that 100 percent of his Medicaid claims were false.

"Frankly, it borders on being obscene," Moriarty said of the mansion expansion. "The taxpayers of the State of Texas paid to build that house, and are paying to expand that house for a guy who claims to have made his money treating the people of Texas."

"I think the only other park I know of is in Jupiter, Florida," Candy Evans said.
That one belongs to singer Celine Dion. A comparison of photos of Dion's estate with those of Malouf's, obtained by News 8, show that Malouf's water park may be bigger.

In Texas, a family's home is immune from seizure. But the lawyers in the false claims action against Malouf say his home may be fair game.

"If that home is purchased with stolen money, or that home is based on money that has been earned by falsehood or deceit, then that home is not protected at all," Moriarty said.

Malouf has several groups of attorneys, since his former company, All Smiles, is in bankruptcy in addition to his pending false claims suit. His most recent criminal attorney did not get back to us.

Related:

• Candy's dirt real estate blog
• Texas AG lawsuits spurred by WFAA dental investigation
• All Smiles Dental Center files for bankruptcy following investigation
• Texas Medicaid dental program pays millions for crowns, fillings
• Texas doctor accused of Medicare, Medicaid fraud gives up license
• Medicaid recruiters scramble for Texas dental patients
• Outrage on Capitol Hill follows News 8 Medicaid probe

Richard J. Malouf, DDS adjoining two homes! One $14-mil home isn’t big enough, I bet something else he has isn’t big enough either… Just saying…

Dr. Richard J. Malouf’s over inflated ego is reflected in his newest home addition. He’s adjoining two homes into one, and it will have a “lazy river” ride. I think it may be for practice for his “up the river” ride. But again I’m just guessing. 

Yes, this is the same Dr. Richard J. Malouf whose company stole millions of tax dollars and who has filed bankruptcy. Also the same one who the Texas Attorney General has filed lawsuits against to recover stolen funds.

Looks like Texas taxpayers may have a new “Six Flags Over Malouf” amusement park soon.

Richard J. Malouf, DDS - Adjoining two homes, to include lazy river ride. Practice for "up the river" ride?

The state of Texas is not done with Dr. Richard Malouf–Orthodontics Fraud King of Texas - and his All Smiles Dental Centers

 

 

FOR IMMEDIATE RELEASE
Contact: Brandy Dietz
bdietz@waterskraus.com
800.226.9880

Waters & Kraus Client Takes on Dental Medicaid Fraud in Texas

Texas AG Joins Whistleblower Lawsuit Against Dallas Dentist and Dental Clinics
DALLAS — July 9, 2012 — Dallas-based law firm Waters & Kraus, LLP announces that Dr. Christine Ellis has sued Dr. Richard Malouf and several All Smiles clinics, alleging violations of the Texas Medicaid Fraud Prevention Act.
Dr. Ellis is represented by Waters & Kraus and Jim Moriarty of Moriarty Leyendecker in Houston. Her lawsuit was recently joined by Texas Attorney General Greg Abbott.

"We at Waters & Kraus are proud to represent Dr. Ellis and to be a part of the fight against dental Medicaid fraud," said Waters & Kraus attorney Dan Hargrove. "Whistleblowers like Dr. Ellis represent our best chance to fight serious fraud that drains the public funds and puts important services at risk."

After serving as an auditor for the Office of Inspector General of the Texas Medicaid Program, Dr. Ellis became concerned about dental fraud she had uncovered. When she spoke before the U.S. House Oversight and Government Reform Subcommittee in April, Dr. Ellis testified to a “flagrancy of fraud that is truly unbelievable." Shortly thereafter, Dr. Ellis filed her whistleblower lawsuit.

The lawsuit alleges that the defendants misrepresented to Medicaid the dental and orthodontic treatment they provided, causing Medicaid to overpay them by many millions of dollars. They allegedly submitted claims for services that were not actually provided or were poorly performed, billed for services that were not medically necessary or were more expensive than those actually provided, and unlawfully recruited patients or paid kickbacks to those who did.

Jim Moriarty, of Moriarty Leyendecker, said, “The courage of Dr. Ellis has shown in reporting these allegations deserves the attention and respect of anyone who cares about public health and the responsible stewardship of taxpayers’ funds. We’re honored to work with Waters & Kraus and Dr. Ellis on this important case.”
If the lawsuit is successful, Dr. Ellis will be entitled to 15 to 25 percent of the recovery, in addition to her costs and attorneys' fees. Whistleblower awards encourage people who know about fraud to come forward. The government relies on citizens like Dr. Ellis to identify and fight fraud.

About Waters & Kraus
Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam whistleblower litigation as well as complex civil litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.

About Moriarty Leyendecker
Houston-based Moriarty Leyendecker has represented thousands of consumers in cases involving allegations of healthcare fraud, consumer defects, and securities fraud during the past 20 years.

Brandy C. Dietz | Public Relations Coordinator
3219 McKinney Avenue | Dallas, TX 75204
Toll Free 800-226-9880 | Phone 214-357-6244 | Fax 214-357-7252
www.waterskraus.com

All Smiles Dental Bankruptcy Update 6-4-2012

Wondering what’s happening at All Smiles Dental?  Here is their Schedules A thru H. A inside look at the company that Medicaid built.

Doc 71 All Smiles Dental Schedule A-G

Disgraced Texas “All Smiles Dental Centers” & Dr. Adrian Martin Codel

Has anyone wondered who Valor Investment’s front man dentist happens to be, since Malouf no longer owned more than 50% of the centers, Valor needed a pretend owner to be on the various PLLC documents.

The “pretend” owner is Dr. Adrian Martin Codel, of Chicago, Illinois, Valor’s headquarters.

Adrian Martin Codel
All Smiles Dental – Texas
AC Dental – Chicago

---

Dr. Adrian Codel

After graduating from Northwestern University Dental School's last graduating class in 2001, I went on to complete a General Practice Residency at the Illinois Masonic Medical Center.

This hospital based dental experience included training in IV sedation and Special Needs patient care in a clinical and O.R. setting. The public health component involved providing dental care on a mobile dental unit.

I enjoyed this aspect of dentistry so much, I stayed on as an attending dentist primarily on the mobile unit. Specifically, providing free urgent care to the homeless Chicago population Friday nights. In addition, I was an associate dentist for a pediatric dentist my first 3 years after receiving my GPR certificate.

In 2005, I purchased an existing dental practice and have been a solo practitioner in this urban community based practice since then.

In October 2010, I was approached by a colleague interested in making an equity investment in the largest provider of dentistry in the state of Texas. I agreed to consult him in this purchase and am currently the president/owner of All Smiles Dental Centers which oversees 38 clinics and 5 mobile units providing dental care to the undeserved population in Dallas and surrounding areas.
http://www.sharecare.com/user/dr-adrian-codel/bio

---

Now, unless Dr. Adrian Martin Codel is a complete imbecile, he knew he was breaking all kinds of Dental Practice Acts by doing this. I’ll give him kudos though; he at least admits he was approached to help with an “Equity Investment”.

I think he might have been approached before October 2010, his Texas dental license was issued in September 2010.

Now he’s linked up with the most outrageous, flamboyant criminal dental enterprise since Michael A., Eddie and Dan DeRose and their FORBA a/k/a Small Smiles. 

Hmm…All Smiles, Small Smiles, …. I’m thinking a nice jingle is in order!

Dr. Adrian M. Codel
Illinois Lic info:
Number-019025709
Status-Active
Date Issued-10/29/2001

Texas Lic info:
Number – 0025986
All Smiles Dental Ctr –Abrams
6780 Abrams Rd. #207
Dallas, Texas 75231
312-217-9630Status - Active
Date Issued –09-14-2010
Disciplinary Actions- No
Permits – Nitrous-issued 10-12-2010

See, Dr. Malouf, they do arrests flamboyant dentists. Dr. Tom K Kalili of Beverly Hills could face 50 years in prison

Yay! A District Attorney with some kahuna’s. Looks like the Office Manager is gonna get nailed too. Unless she’s wise and rolls over on Dr .Kalili. But as we have seen, some will go down with the ship. Sad, really sad.

 

Beverly Hills Patch

A Beverly Hills dentist accused of insurance fraud was arrested Friday in connection with a criminal complaint charging him with 101 felony counts, the District Attorney's Office said.

Tom K. Kalili, 57, is scheduled to be arraigned early next week on charges including insurance fraud, grand theft of personal property and filing a false tax return.

Kalili owns and operates Beverly Hills Medical Suites, a dental office located at 416 N. Bedford Drive, according to the District Attorney's Office.

KTLA reported that Kalili and his partners have celebrity clients who include Jim Carrey, Kathy Ireland, Adam Sandler, Keanu Reeves and Vin Diesel.

Kalili's office manager and biller, Claudia Ventura, 38, is charged with 10 felony counts, including insurance fraud and accessory after the fact. She is set to be arraigned next week along with Kalili.

The charges stem from a multi-year investigation by the California Department of Insurance, the California Dental Board and the California Franchise Board.

Prosecutors were asking that Kalili's bail be set at $500,000 and that Ventura's bail be set at $25,000.

If convicted as charged, Kalili could face more than 50 years in state prison and Ventura could face more than seven years behind bars, according to the District Attorney's Office.

Dr. Richard Malouf and Dr. Adrian Codel partner in many of the All Smiles–Valor Investment Entities

All Smiles Dental Centers various Names, members, executives and agents.

All Smiles Dental Centers, Inc All Smiles Dental Centers All Smiles Dental and Orthodontics All Smiles Dental, PA All Smiles Dental Professionals* Arlington Smiles by Wire, PLLC AS Property Holdings, LLC* Dallas Smiles, PLLC** Discount Dental Services Fort Worth Smiles by Wire, PLLC* Fulton Road Smiles, PLLC** Garland Road Smiles, PLLC8*,** Garland Road Smiles by Wire, PLLC** *Officer, Member, Director or Agent: Richard Malouf,DDS 9090 Skillman St. Ste, 200C Dallas, TX 75243

Haltom City Smiles, PLLC*,** Jacksboro Smiles, PLLC*,** Jacksboro Smiles by Wire, PLLC*,**, *** Lewisville Smiles, PLLC*,** Northwest Highway Smiles, PLLC*,** NW Hwy Smiles by Wire, PLLC Oak Cliff Smiles, PLLC Park Plaza Smiles, PLLC*,** Plano Minyards Smiles, PLLC*,** S. Hampton Smiles, PLLC*,** St. Francis Smiles, PLLC*,** Valley View Smiles, PLLC **Agent: Adrian Codel,DDS 4901 LBJ Fwy, Ste 400 Dallas, TX 75244 *** Not listed on Bankruptcy Filings

Petition for Financing – who owns what and how much and how it happened.
Terms and Conditions of Financing
The Budget

As a side note here:

I bet Church Street is happy All Smiles filed and got my focus off of their big month of May. Sorry to disappoint. I’m still focused, as I have been for 4 plus years. CSHM simply should not have tied down and abused children to steal tax dollars.