The Texas Lawbook

Free Speech, Due Process and Trial by Jury

White-Collar/Regulatory

Pharmacy CEO Convicted on All Counts in $160M Medicare Fraud Trial

Mohamed Mokbel was convicted on 15 charges for his role in what prosecutors said was a multipart scheme to defraud the government that involved deceiving doctors and patients, too. Mokbel, former CEO of 4M Pharmacies, argued all he was guilty of was trying to compete with the powerful pharmacy benefit managers, entities that manage prescription drug programs for health plans and control 80 percent of the market. The panel of 12 deliberated for about five hours Tuesday before returning the unanimous verdict.

Testimony Begins in $160M Medicare Fraud Trial of Pharmacy CEO

The CEO of 4M Pharmaceuticals, Mohamed Mokbel, is facing 15 charges related to his alleged role in a Medicare fraud scheme that prosecutors said involved call centers in Egypt and the Philippines, targeted elderly individuals and resulted in a $160 million fraud on the government. Mokbel’s attorneys told jurors Tuesday their client was operating within the bounds of the law with his business plan, which involved payments to a third-party lead generator.

King & Spalding Lands Former Top COVID-19 Fraud Prosecutor 

Michael Galdo enters the private sector after more than 15 years as a federal prosecutor. He recently served as the Department of Justice’s Director of COVID-19 Fraud Enforcement in the Office of the Deputy Attorney General and was an assistant U.S. attorney in charge of cybercrime in the Western District of Texas.

Lessons from the Wind-Up of the SEC’s First Major ‘Care Obligation’ Reg BI Enforcement Action

In 2022, the SEC brought its first enforcement action centered on the alleged failure of a broker-dealer and its associated persons to comply with the Regulation Best Interest (Reg BI) “care obligation.” The SEC sought to use the case to impose a new standard of knowledge and education about investments upon investment professionals. A close read of the case has important lessons for both financial professionals and attorneys who represent them.

Jury Acquits DFW Doctor Accused in Alleged University Athletic Billing Scheme

A Sherman jury dealt federal prosecutors a rare acquittal Tuesday in the trial of a Dallas-area doctor accused in an alleged fraudulent scheme to bill insurance companies for medical services provided to injured university student athletes. Jurors deliberated about four hours before finding Dr. Kyle Carter not guilty of a single count of conspiracy to commit wire fraud.

How Meta’s $1.4B Settlement Impacts Your Obligations Under CUBI

The Texas Capture or Use of Biometric Identifier Act has been around since 2009, but it has been making headlines recently due to a $1.4 billion settlement between Meta Platforms and the Texas attorney general. Companies concerned about potential liability under CUBI should undertake a comprehensive review of what data they collect to ensure that they are treating biometric identifiers properly.

Dallas-Area Doctor on Trial in Alleged Multimillion-Dollar University Athletic Billing Scheme

The U.S. Attorney’s Office for the Eastern District of Texas has accused Dr. Kyle Carter of conspiring with a third-party billing company to collect thousands of dollars for work treating student-athletes he never saw and who were actually treated by university athletic trainers. Carter’s lawyers from Vedder Price told jurors the doctor was merely a supervising physician and didn’t have insight into the company’s billing. 

SEC’s FWRO Leads $650M Crypto-Related Pyramid Scheme Litigation

Led by lawyers in its Fort Worth office, the U.S. Securities and Exchange Commission brought charges Monday against the owners, employees and promoters of a $650 million crypto asset company that the federal agency claims was actually a multi-level marketing scheme that defrauded more than 200,000 investors, including many in Texas.

Proposed Anti-Money Laundering Rules and Other Requirements: Has the SEC Exceeded Its Authority in Regulating Private Funds?

In May, the Securities and Exchange Commission and the Financial Crimes Enforcement Network initiated rulemaking to enhance anti-money laundering compliance for certain SEC-Registered Investment Advisers and Exempt Reporting Advisers. The proposed rule was expected, following FinCEN’s February 2024 related notice that would add certain RIAs and ERAs as financial institutions subject to the Bank Secrecy Act. Taken in aggregate, these changes represent a new and more formalized regulatory wrapper for small funds, making compliance more prescriptive and resource-intensive. Recent decisions at the Fifth Circuit and the U.S. Supreme Court complicate matters further.

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