Rene Fernandez Gaviola, a 68-year-old Houston clinic operator, has been sentenced to 120 months in federal prison for orchestrating a Medicaid fraud scheme that resulted in nearly $5 million in losses. U.S. District Judge Randy Crane also imposed a 3-year supervised release and ordered Gaviola to pay over $4.9 million in restitution.
From 2018 to 2021, Gaviola submitted fraudulent Medicaid claims for pediatric dental services at Floss Family Dental Care, including treatments never provided or performed by unlicensed personnel. He employed his unlicensed son to perform dental services, at times operating the clinic without any licensed dentists.
Gaviola also paid kickbacks to bring Medicaid-insured children to his clinic and laundered the proceeds through personal bank accounts. His actions included multiple transactions over $100,000.
The court highlighted Gaviola's failure to repay any of the stolen funds despite owning $2 million in assets in the Philippines. Gaviola's co-conspirator, Mia Diaz, was previously sentenced to 21 months in prison.
The case was investigated by the FBI, Texas Attorney General’s Medicaid Fraud Control Unit, and the Department of Health and Human Services - Office of Inspector General.