Justices Eye Scienter in State’s $16M Medicaid Fraud Win
The main issue in the case involves whether the state proved scienter — that Dr. Richard Malouf knew he was in violation of the law when he filed forms for reimbursement 1,842 times representing he had performed certain services that were actually performed by trainees at his All Smiles Dental Clinic — which is required for the judgment to stand. After Texas was granted the early win by Travis County District Judge Catherine Mauzy, Malouf appealed and a three-justice panel affirmed the holding in October 2022. He took his fight to the Texas Supreme Court in January 2023, and in November the court agreed to hear the case.