Doctor, Who Falsely Diagnosed Patients in $118M Fraud Scheme to Fund His 'Luxurious Lifestyle,' Sentenced to 10 Years in Prison
Dr. Jorge Zamora-Quezada falsely diagnosed his patients with illnesses such as rheumatoid arthritis and billed their insurance companies for procedures and tests they did not need
He is also being forced to forfeit about $28 million, including 13 real estate properties, a jet and a Maserati sports carA Texas doctor, who was found guilty of fraud for falsely diagnosing patients with diseases they did not have, has been sentenced to 10 years in federal prison.
According to a press release from the U.S. Department of Justice's Office of Public Affairs, Dr. Jorge Zamora-Quezada was sentenced on May 21 to 10 years in prison and three years of supervised release for his role in a health care fraud scheme that involved more than $118 million in false claims and the payment of more than $28 million by insurers.
During Zamora-Quezada's Texas trial, prosecutors said he falsely diagnosed his patients with illnesses and billed their insurance companies for procedures and tests they did not need for his own financial gain.
Following his sentencing, Zamora-Quezada, 68, is also being forced to forfeit about $28 million, including 13 real estate properties, a jet and a Maserati GranTurismo sports car.
"Zamora-Quezada falsely diagnosed his patients with rheumatoid arthritis and administered toxic medications in order to defraud Medicare, Medicaid, TRICARE and Blue Cross Blue Shield," the press release stated. "The fraudulent diagnoses made the defendant's patients believe that they had a lifelong, incurable condition that required regular treatment at his offices."
"After falsely diagnosing his patients, Zamora-Quezada administered unnecessary treatments and ordered unnecessary testing on them, including a variety of injections, infusions, X-rays, MRIs and other procedures — all with potentially harmful and even deadly side effects," the press release continued. "To receive payment for these expensive services, Zamora-Quezada fabricated medical records and lied about the patients' condition to insurers."
According to the DOJ, Zamora-Quezada was a rheumatologist who was licensed to practice medicine in Texas, Arizona and Massachusetts. All of his medical licenses have since been revoked.
Prosecutors also argued that Zamora-Quezada attempted to cover up the fraud and "falsified patient records to support the false diagnoses after receiving a federal grand jury subpoena." His scheme lasted nearly 20 years and involved about $325 million, the DOJ previously said.
Zamora-Quezada was found guilty on one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of conspiracy to obstruct justice in 2020.
Local outlet KRGV reported that his sentencing was delayed several times because prosecutors and Zamora-Quezada's defense attorneys could not agree on a number of victims in the scheme or agree on the amount of money that was stolen.
Want to keep up with the latest crime coverage? Sign up for for breaking crime news, ongoing trial coverage and details of intriguing unsolved cases.
Zamora-Quezada was also accused of creating a toxic environment for his clinic's employees — many of whom were on work visas to live in the U.S. — by getting angry if they did not meet a quota for procedures or saying that he would fire them and try to revoke their visa if they spoke out against him.
"Testimony at trial established that Zamora-Quezada told employees to 'aparecer' the missing records — 'to make them appear,' " the DOJ said. "Former employees also recounted being sent to a dilapidated barn to attempt to retrieve records. There, files were saturated with feces and urine, rodents and termites that infested not only the records but also the structure."
According to the DOJ, other rheumatologists in Texas' Rio Grande Valley region testified during Zamora-Quezada's 2020 trial that they saw hundreds of patients whom he had falsely diagnosed with rheumatoid arthritis. One doctor even testified that it would be "obvious" to "most" doctors that these patients did not have the autoimmune condition.
Prosecutors also argued that the false diagnoses and medications that Zamora-Quezada prescribed to patients caused "debilitating" side effects, including strokes, necrosis (or cell and tissue death) of the jawbone, hair loss, liver damage and severe pain.
"Constantly being in bed and being unable to get up from bed alone, and being pumped with medication, I didn't feel like my life had any meaning," one patient testified during the trial, per the DOJ.
Another patient's mother testified that she felt like her child served as a "lab rat," and other patients testified that they were "living a life in the body of an elderly person."
"Dr. Zamora-Quezada funded his luxurious lifestyle for two decades by traumatizing his patients, abusing his employees, lying to insurers and stealing taxpayer money,' Matthew R. Galeotti, the head of the DOJ's criminal division, said in the press release.
"His depraved conduct represents a profound betrayal of trust toward vulnerable patients who depend on care and integrity from their doctor," Galeotti added.
Read the original article on People
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Michael Burry is Betting Big on This 1 S&P 500 Stock That's Down 40% in 2025
Michael Burry, the legendary investor famous for predicting the 2008 housing crisis, has taken a new position in UnitedHealth Group (UNH) through his Scion Asset Management, according to 13F filings for the second quarter. UnitedHealth stock has been battered in 2025, falling nearly 60% from all-time highs through last Thursday before surging 12% on Friday, Aug. 15 following Warren Buffett's surprise disclosure of a $1.6 billion stake. The healthcare giant has faced intense scrutiny as the poster child for America's rising healthcare costs. More News from Barchart As SoFi Launches International Money Transfer Services, How Should You Play SOFI Stock? This Cannabis Stock Just Transformed Into a Bitcoin Treasury Play. Should You Buy Shares Now? Profiting from Volatility: CRWV Long Straddle Trade Setup Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The nation's largest private health insurer is navigating multiple headwinds. CEO Andrew Witty stepped down in May after the company pulled its annual earnings outlook. A Justice Department investigation into Medicare billing practices has added regulatory pressure, while the company's revised 2025 outlook fell well short of Wall Street expectations. Burry's investment suggests he sees opportunity amid the turmoil. This adds on to Buffett's investment, which analysts say 'represents a big vote of confidence' and could provide a 'trading floor' for the managed care sector. With UnitedHealth trading at deeply discounted levels despite its market-leading position, contrarian investors like Burry may be betting the current challenges are temporary while the long-term healthcare demand thesis remains intact. Is UNH Stock a Good Buy Right Now? UnitedHealth Group's Q2 earnings call revealed near-term pressures, but also highlighted compelling reasons why the healthcare giant could emerge stronger for long-term investors. UnitedHealth's medical costs have been rising faster than expected. The company initially estimated costs to go up about 7.5% this year, but they're actually rising even more. For 2026, UnitedHealth is being much more conservative and assuming medical costs will rise by nearly 10%. The company is responding by: Raising prices - Charging higher premiums to customers to cover the increased medical costs. Cutting benefits - Reducing what services insurance plans will cover or making customers pay more out of pocket. Using narrower networks - Limiting which doctors and hospitals customers can use (typically to cheaper, more efficient providers). These changes take time to work through the system. Most of UnitedHealth's contracts renew on Jan. 1, so the 2026 changes will start helping their profits next year, with full benefits showing up by 2027. CEO Stephen Hemsley has initiated comprehensive operational reforms, including monthly business reviews, enhanced forecasting processes, and significant management changes across Optum. Moreover, UNH is investing heavily in AI capabilities and modernizing its technology stack, which should drive long-term efficiency gains. Despite execution challenges, OptumHealth's value-based care model continues to demonstrate superior outcomes with 20% fewer hospitalizations and 11% fewer ER visits versus. Mature patient cohorts (2021 and prior) are achieving 8%-plus margins, proving the model's viability once properly executed. UNH stock remains the dominant player in multiple healthcare segments with unmatched scale advantages. Its integrated model combining insurance, pharmacy benefits, and care delivery creates defensive moats that competitors struggle to replicate. What Is the Target Price for UNH Stock? Analysts tracking UNH stock forecast adjusted net income to expand from an estimated $16.24 per share in 2025 to $32.22 per share in 2029. Today, UNH stock trades at a forward price-earnings multiple of 19x, which is in line with the 10-year average. If it trades at a similar multiple, the healthcare stock should trade around $608 in early 2029, indicating an upside potential of over 100% from current levels. Out of the 25 analysts covering UNH stock, 15 recommend 'Strong Buy,' two recommend 'Moderate Buy,' six recommend 'Hold,' and two recommend 'Strong Sell.' The average UNH stock price target is $306.62, roughly in line with the current trading price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
2 hours ago
- Yahoo
WATCH: Agents rip down vulgar anti-ICE sign amid Trump DC takeover: 'Taking America back'
As federal authorities carried out over 100 immigration arrests following President Donald Trump's takeover of Washington, D.C., law enforcement, agents videoed themselves ripping down a vulgar anti-ICE sign in the Mount Pleasant neighborhood. "We're taking America back, baby," one of the agents said as he crumpled up the sign. ICE posted the video on its official X account on Sunday amidst widespread federal law enforcement operations in D.C. that have resulted in well over 300 arrests, including over 100 immigration arrests. The video showed just over half a dozen masked agents ripping down a sign with Spanish and English writing that said, "F*** ICE" and "Mount Pleasant Melts ICE." Doj Investigating Possible Dc Crime Data Manipulation Amid Trump's Crackdown On Violence Speaking in Spanish, one of the agents shared a message, saying, "This is for America. The United States is No. 1." Read On The Fox News App "We're taking it back again," he added. In its post, the agency added, "ICE is dedicated to removing criminals from American cities, and D.C. is no exception. Make D.C. Safe Again!" This comes as federal officials from ICE, DEA, Border Patrol and other agencies have flooded portions of the city as part of Trump's crackdown on rampant crime in the nation's capital. Members of the National Guard have also been deployed along with military tactical vehicles to critical points in the city, including the National Mall and Union Station. 'Defend The Homeland': Dhs Unveils Striking New Ice Fleet To Boost Recruitment, Visibility Trump federalized the Metropolitan Police Department on Aug. 11 in response to a spate of high-profile killings and attacks, and a crime wave in the district that has persisted since 2020. Trump federalized the local police department under section 740 of the District of Columbia Home Rule Act, which allows the president to assume emergency control of the capital's police force for 30 days. Washington, D.C., is one of several cities and jurisdictions with sanctuary policies in place. Under Trump's federal takeover, however, all of that is changing. Speaking on Fox News, Trump Border Czar Tom Homan said, "D.C. under federal control is not going to be a sanctuary city." Ms-13 Gang Member Arrested In Dc As Bondi Touts Admin's 'Extraordinary' Crime Crackdown Homan said, "We're working with the police hand-in-hand — and when we encounter a criminal illegal alien, they'll be turned over to ICE, and that is the way it should be." "I'm not saying that every illegal alien in D.C. is a criminal. But many are, so these are people we're going to focus on. An illegal alien criminal safety threat in D.C. is not going to be protected. There's no sanctuary for these people in the city of D.C."Original article source: WATCH: Agents rip down vulgar anti-ICE sign amid Trump DC takeover: 'Taking America back' Solve the daily Crossword
Yahoo
3 hours ago
- Yahoo
CVS unit must pay $290 million in drug whistleblower lawsuit, judge rules
By Jonathan Stempel (Reuters) -A federal judge ordered CVS Health's pharmacy benefit manager unit to pay $289.9 million in damages and penalties after it overcharged Medicare for prescription drugs. In a Tuesday decision, Chief Judge Mitchell Goldberg in Philadelphia federal court tripled to $285 million the damages he had ordered CVS Caremark to pay in June, citing the federal False Claims Act. He added a $4.87 million civil fine. Goldberg rejected CVS' request to pay less, saying that while CVS Caremark was liable for only two years of overbilling, evidence at trial "made clear that the fraud was financially motivated, not the result of some innocent or mistaken belief." CVS, based in Woonsocket, Rhode Island, said on Wednesday it plans to appeal. Last month, a Manhattan federal judge ordered CVS' Omnicare unit to pay $948.8 million in a separate whistleblower lawsuit alleging fraudulent billing. CVS plans to appeal that judgment. Goldberg presided in March over a non-jury trial in the whistleblower case brought by Sarah Behnke, a former head actuary for Medicare Part D at Aetna. She accused CVS Caremark of having caused health insurers such as Aetna to submit inflated claims since 2010 to the Centers for Medicare and Medicaid Services (CMS), while pharmacies such as Rite Aid and Walgreens were paid less. CVS argued that the original $95 million in damages was substantial, and punitive damages should be limited to $95 million. But the judge said CVS Caremark's fraud not only financially harmed the government, but diminished public confidence in it. "CMS relies on companies like Caremark to truthfully and accurately report Part D drug prices," he wrote. "Caremark's conduct broke CMS's trust, and as a result, the public's trust in CMS." Behnke sued in 2014. CVS bought Aetna four years later. The False Claims Act lets whistleblowers sue on behalf of the government and share in recoveries, typically 15% to 30%. The case is US ex rel Behnke v CVS Caremark Corp et al, U.S. District Court, Eastern District of Pennsylvania, No. 14-00824.