Harris County Clinic Owner Pleads Guilty to Fraud

April 6, 2005

Texas Mutual Insurance Company reported that Eric Scheffey’s Harris County Bone and Joint Clinic Association pleaded guilty recently to fraud-related charges.

The insurer said the guilty plea marks the end of a lengthy investigation by the Public Integrity Unit of the Travis County District Attorney’s Office in conjunction with Texas Mutual, the Texas Workers’ Compensation Commission, and other state agencies and associations.

According to Texas Mutual, the investigation uncovered evidence that Scheffey’s clinic fraudulently obtained payments from Texas Mutual and others for medical services that were not rendered. The plea agreement required the clinic to pay restitution of $24,599 to be divided among Texas Mutual, the Texas Municipal League and the University of Texas. The clinic must also pay a $1,000 fine and court costs.

On Feb. 4, the Texas Board of Medical Examiners revoked Scheffey’s medical license and assessed an administrative penalty of $845,000 and transcript costs of over $9,000. According to information provided by the Board, the action was based upon findings that Scheffey performed 29 unnecessary surgeries on 11 patients and also failed to report medical malpractice liability claims.

Texas Mutual Insurance Company maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

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