Jury Acquits Texas Oral Surgeon in Alleged Medicaid Fraud Scheme

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Feds had accused surgeon of bilking Medicaid for $4.6 million in fraudulent billings.


A Texas oral surgeon accused of bilking Medicaid for $4.6 million in fraudulent billings was acquitted on Friday after an 8-day trial and 2 days of jury deliberations.

Federal prosecutors had originally charged Gary Morgan Schwarz, DDS, of McAllen, Texas, with 22 counts, but those charges were whittled down to 8 counts of attempt and conspiracy to commit mail and healthcare fraud. Specifically, the government accused Dr. Schwarz of speeding low-income patients through his clinic and overbilling Medicaid for tooth extractions.

A paid informant for the government filmed video of Schwarz allegedly running an "assembly line" of patients through his clinic. But neither the video nor testimony from two of Dr. Schwarz's former employees convinced the jury that the surgeon had done anything wrong. Tony Canales, Dr. Schwarz's attorney, argued that all the procedures and billings were legal. The jury found Dr. Schwarz not guilty on Friday.

"Gratitude to God for providing me with a family, with the support of my church, friends, family, patients, dentists who sustained me through this and then to be exonerated on Good Friday," Schwarz told reporters. "It boggles my mind. I can't get it into words."

Irene Tsikitas

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