A Texas doctor has been sentenced to 10 years and one month in prison, along with an order to pay more than $34 million in restitution, for his involvement in a scheme to defraud Medicare by prescribing durable medical equipment (DME) and cancer genetic testing without any patient interaction.
Daniel R. Canchola, M.D., 54, of Flower Mound, was found to have electronically signed doctor’s orders for DME and cancer genetic testing, which he knew were submitted as false and fraudulent claims to Medicare. Between August 2018 and April 2019, Canchola received approximately $30 for each fraudulent order he signed, resulting in over $466,000 in kickbacks.
The fraudulent doctor’s orders signed by Canchola were used to submit more than $54 million in false claims to Medicare. Investigators revealed that Medicare beneficiaries targeted in this scheme were approached through telemarketing campaigns and health fairs, where they were persuaded to undergo unnecessary cancer genetic testing and receive DME.
In October 2022, Canchola pleaded guilty to conspiracy to commit wire fraud.
The announcement of the sentencing was made by Principal Deputy Assistant Attorney General Nicole M. Argentieri, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office, and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
The investigation was conducted by HHS-OIG and MFCU, with the case prosecuted by Assistant Chief Brynn Schiess and Trial Attorney Ethan Womble of the Criminal Division’s Fraud Section.
