Attorney General Ken Paxton's Medicaid Fraud Control Unit has successfully secured a conviction against Mohamad Mokbel, a 59-year-old Houston resident, for his involvement in a significant healthcare fraud scheme. Mokbel was found guilty on 15 counts of healthcare fraud related to the fraudulent billing of expensive topical creams through his company, 4M Pharmaceuticals. The scheme resulted in over $160 million in illicit claims.
From 2014 to 2021, Mokbel operated 14 pharmacies with straw owners and submitted false prescriptions using purchased beneficiaries' personal information. This led to substantial profits from government health care programs for unnecessary medications. Mokbel now faces up to 20 years in federal prison and may be ordered to pay up to $160 million in restitution.
The investigation involved collaboration between various agencies including the FBI, IRS Criminal Investigation, Homeland Security Investigations, HHS-OIG, and the FDA. Key figures leading the investigation were Sergeant Kurt Nelson, Sergeant Mike Price, Captain Alex Chancia, and Investigative Auditors Diane Glick and Kalpana Patel from Paxton’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Kathryn Olson and Adam Goldman prosecuted the case.
Attorney General Paxton commented on the case stating: “Fraudulent schemes like the one perpetrated by Mr. Mokbel undermine our health care system and exploit hardworking taxpayers.” He emphasized their commitment to holding individuals accountable who defraud public programs.
Since 2021, Paxton's Medicaid Fraud Control Unit has recovered more than $612 million for Texas taxpayers through settlements, judgments, and restitution. The unit receives substantial funding from both federal sources—75 percent from the U.S. Department of Health and Human Services—and state funds totaling approximately $6.98 million for fiscal year 2023.