Court Awards Millions for Texans in Medicaid Fraud Lawsuit 

The Court found that Dr. Richard Malouf fraudulently billed Medicaid for services that were actually provided by a different doctor, including over 100 billings he filed while vacationing out of the country.  

AUSTIN – Attorney General Ken Paxton today announced that the Hon. Catherine Mauzy of the 126th Judicial District Court of Travis County has ruled Dr. Richard Malouf of ASDC Holdings, LLC responsible for 1,842 unlawful acts under the Texas Medicaid Fraud Prevention Act. Dr. Malouf operated orthodontics clinics for many years in the Dallas area and billed tens of millions of dollars to Texas Medicaid. The Court found that Malouf fraudulently billed Medicaid for services that were actually provided by a different doctor, including over 100 billings he filed while vacationing out of the country.  

“Identifying and preventing Medicaid fraud continues to be a top priority for the Office of the Attorney General. Misconduct like this compromises the integrity of the Medicaid program and must be stopped as soon as it is discovered,” said Attorney General Paxton. “I am proud of this recovery of taxpayer money. My office is, as always, committed to ensuring that Medicaid dollars are preserved for those who need it most.”  

As a result of the court’s order, Dr. Malouf is liable to Texas for approximately $12 million, plus attorney and court fees.  

Read a copy of the order here