Cypress Healthcare Providers Headed to Prison for $20 Million Healthcare Scam

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HOUSTON (Covering Katy News) – A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.

U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division led the prosecution.

Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Dayakar Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During trial, the jury heard evidence that Narang and Moparty submitted false and fraudulent claims for medical tests that were not medically necessary, not provided or both and then billed at Red Oak Hospital at a higher reimbursement rate.

Additionally, Narang and his co-conspirators falsified home health patient documents to make the beneficiaries appear sicker than they were in order to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna.

Moparty also also instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact, the patients never received services from Red Oak and the other entities.

Narang and MoParty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.

Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.

The FBI and Office of Personnel Management – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tina Ansari and Trial Attorney Drew Pennebaker are prosecuting the case.


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