Medicare Fraud: Texas Man Sentenced to Prison for $60M Scam

FULSHEAR, TEXAS — A Texas businessman who operated durable medical equipment companies received a 90-month federal prison sentence for orchestrating a scheme involving nearly $60 million in fraudulent Medicare claims, according to the U.S. Department of Justice.

Patrick Cassells, 65, pleaded guilty in June 2024 to one count of conspiracy to commit health care fraud. In addition to the prison term, a federal judge ordered Cassells to pay $25.4 million in restitution and forfeit four vehicles and three Houston-area properties, as reported by the Department of Justice on March 9, 2026.

The Fraudulent Scheme

According to federal prosecutors, Cassells owned and operated three companies that supplied patients with durable medical equipment, including knee braces, back braces, shoulder braces, and wrist braces. Federal authorities say Cassells submitted false information on Medicare enrollment paperwork, misrepresenting the ownership and operation of one of his companies.

The scheme involved collaboration with other individuals who provided Cassells with fabricated medical documentation to support claims for orthotic braces and other medical devices, according to the Justice Department. These falsified documents were used to justify Medicare reimbursements for equipment that patients did not need or never received.

Federal investigators determined that Cassells submitted approximately $59.9 million in fraudulent claims to Medicare and received more than $27 million in payments from the program, as reported by the Justice Department.

Prosecutors indicated that Cassells used proceeds from the fraud scheme to purchase personal vehicles and additional vehicles that he planned to export to Nigeria. According to Hoodline, the Houston area has seen previous fraud cases involving schemes where perpetrators used ill-gotten funds to buy vehicles for overseas shipment, including to Nigeria.

Impact on Medicare Program

Federal health care fraud prosecutions target individuals and organizations that exploit Medicare, a program that provides health coverage to approximately 67 million Americans, primarily those aged 65 and older and individuals with certain disabilities. Fraudulent billing schemes divert taxpayer funds intended for legitimate patient care.

Durable medical equipment fraud represents a significant category of Medicare fraud. These schemes typically involve billing for equipment that is medically unnecessary, never delivered, or more expensive than what was actually provided. Federal regulations require that durable medical equipment be prescribed by a physician and meet specific medical necessity criteria.

The Medicare Fraud Strike Force, a joint initiative of the Department of Justice and Department of Health and Human Services, has prosecuted numerous cases involving fraudulent durable medical equipment suppliers across the United States. These enforcement actions are designed to protect the integrity of federal health care programs and recover funds for taxpayers.

Federal Enforcement Efforts

This case represents part of broader federal efforts to combat health care fraud. According to the Justice Department, health care fraud investigations involve coordination among multiple agencies, including the FBI, the Department of Health and Human Services Office of Inspector General, and state Medicaid Fraud Control Units.

Federal health care fraud convictions can result in substantial prison sentences, particularly when the fraud amount exceeds millions of dollars. Conspiracy to commit health care fraud carries a maximum sentence of 10 years in federal prison, though actual sentences depend on federal sentencing guidelines and case-specific factors.

Restitution orders require convicted defendants to repay funds fraudulently obtained from government programs. Asset forfeiture provisions allow federal authorities to seize property, vehicles, and real estate purchased with proceeds from criminal activity.

Resources for Reporting Fraud

Medicare beneficiaries who suspect health care fraud should report concerns to appropriate authorities. The Department of Health and Human Services operates a fraud hotline at 1-800-HHS-TIPS (1-800-447-8477) for reporting suspected Medicare and Medicaid fraud.

Patients who receive durable medical equipment they did not order, or who are contacted by companies offering free medical equipment, should contact Medicare directly at 1-800-MEDICARE (1-800-633-4227). These unsolicited contacts may indicate fraudulent activity.

The Centers for Medicare & Medicaid Services encourages beneficiaries to review their Medicare Summary Notices carefully to verify that all listed services and equipment were actually received. Discrepancies should be reported immediately.

For questions about Medicare coverage and benefits, beneficiaries can contact the National Long-Term Care Ombudsman Resource Center at 1-800-677-1116 or visit https://ltcombudsman.org for additional resources and assistance.