Doctor Heads to Prison for Home Health Care Fraud

HOUSTON – A Houston doctor has been ordered to federal prison following his conviction on five counts related to health care fraud, announced U.S. Attorney Kenneth Magidson. A jury deliberated for approximately three hours following a three-day trial before convicting Dr. Warren Dailey, 68, on March 30, 2016, of conspiracy to commit health care fraud, two counts of false statements relating to health care matters, one count of conspiracy to pay and receive health care kickbacks and one count of payment and receipt of health care kickbacks.  

Today, U.S. District Judge David Hittner, who presided over the trial, handed Dailey a 63-month sentence. He was further ordered to pay restitution of $913,620. Dailey will also be required to serve a term of three years of supervised release following completion of the prison term.

At trial, the jury heard that from approximately 2009 through 2012, Dailey was a physician specializing in family practice in Houston and defrauded Medicare by authorizing Medicare beneficiaries for home health care when such services were not needed. The evidence at trial demonstrated Dailey conspired with a home health care owner here in Houston and agreed to sign Medicare authorization forms certifying services in exchange for a monthly flat fee from the home health owner. Dailey signed hundreds of authorization forms for beneficiaries that would falsely certify the patients were homebound, that home health was medically necessary and that the beneficiaries were under his care. Medicare paid the home health owner approximately $913,620 for home health services Dailey referred. 

Dailey will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.  

The charges are a result of the investigative efforts of the U.S. Department of Health and Human Services -Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Tina Ansari prosecuted the case.