A Frisco, Texas clinic owner was convicted Thursday of orchestrating a $26 million fraud against the military’s health care program, with prosecutors revealing he spent stolen funds on a gold-plated Tesla Cybertruck and other luxuries.
Kevin D. Curry, 64, was found guilty in federal court in Fort Worth on nine counts spanning health care fraud, illegal kickbacks and money laundering, according to the Justice Department. The verdict followed a trial that exposed how Curry, who owned mental health clinics in Plano, Fort Worth and Fort Walton Beach, Florida, systematically exploited TRICARE, the program serving active-duty servicemembers, retirees and their families.
Curry’s scheme centered on transcranial magnetic stimulation, or TMS, a therapy he billed for even when it was medically unnecessary or never performed at all. Prosecutors told the jury he paid more than $5.5 million in illegal kickbacks to lure active-duty servicemembers, veterans and family members into consenting to TMS they did not qualify for and, in many cases, never actually received.
The fraud ran deeper than phantom treatments. Evidence showed Curry falsely presented himself as a medical doctor and secretly used licensed physicians’ credentials to submit claims to TRICARE without their knowledge or consent. He also directed employees to fabricate medical records to create the illusion of legitimate care.
Across his three clinics, Curry submitted more than $26 million in false, fraudulent or kickback-tainted claims. TRICARE ultimately paid out approximately $17 million before the scheme unraveled.
The money did not sit idle. Authorities traced the proceeds to a spending spree that included hotel stays, a casino-themed party and the headline-grabbing purchase of a gold-plated Tesla Cybertruck valued at more than $100,000.
Assistant Attorney General Colin M. McDonald condemned the scheme in a statement issued after the verdict. “This defendant exploited a critical health care program serving active-duty servicemembers and their families,” he said, “diverting taxpayer dollars to bankroll personal luxuries ranging from hotel stays to a casino-themed party and even a gold-plated Tesla Cybertruck.”
US Attorney Ryan Raybould delivered equally sharp criticism of Curry’s conduct. “This defendant shamelessly preyed on the trust of servicemembers, veterans, and their families,” he said. Raybould detailed how Curry fabricated medical records, stole doctors’ identities and submitted fraudulent claims, all while profiting from kickback-tainted money.
Curry now faces a maximum of 10 years in prison on each of the nine counts, with a federal district court judge to determine his final sentence after weighing US Sentencing Guidelines and other statutory factors. No sentencing date has been set.