Texas doctor convicted for accepting more than $200K in medical kickbacks

Texas - A Texas doctor faces up to 15 years in federal prison after a jury found him guilty of accepting more than $200,000 in kickbacks for directing patient lab work to certain facilities, the U.S. Attorney for the Northern District of Texas announced.

Dr. Hector Ubaldo, 60, an internal medicine physician based in the Katy-area, was convicted of conspiracy to pay and receive healthcare kickbacks and for soliciting and receiving illegal kickbacks. The jury reached its decision in just 14 minutes after a two-day trial.

According to the U.S. Attorney's Office, Dr. Ubaldo would take cash from "marketers" and in return, he'd send patients' blood and urine samples to specific labs, such as R.K. Clinical, who would then bill insurance companies and Medicare for running diagnostic tests.

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In court, prosecutors presented evidence showing that Dr. Ubaldo accepted more than $253,000 in bribes. One lab was able to bill insurers approximately $3.4 million for diagnostic tests. The labs involved, including R.K. Clinical, profited from the arrangement. Dr. Ubaldo was heard on video, which was recorded by one of the marketers in a meeting, saying, "To tell you the truth, I need the cash." He later added, "The minimum I’m willing to [expletive] take on a monthly basis is about $10 grand."

Dr. Hector Ubaldo (Courtesy of U.S. Attorney's Office, Northern District of Texas

The scheme also involved setting up fake medical advisory agreements through which Dr. Ubaldo was supposed to provide advisory services in exchange for a monthly payment. However, evidence showed these agreements were a cover to funnel kickbacks in exchange for him sending patient samples to certain labs.

Dr. Ubaldo was taken into custody after his conviction and awaits sentencing. His possible 15-year sentence includes five years on the conspiracy count and 10 years on the solicitation and receipt charge.

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R.K. Clinical’s owner, Kelly Nelson, pleaded guilty and was sentenced to 30 months in prison in May. The marketer involved also pleaded guilty before trial and now faces up to five years in prison.

The investigation was conducted by the Federal Bureau of Investigation’s Dallas Field Office and the Defense Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorneys P.J. Meitl and Nancy Larson, with U.S. District Judge Mark Pittman presiding.

The U.S. Attorney’s office noted more than 15 doctors, marketers, and lab owners have been prosecuted in recent years in connection with healthcare kickback schemes in the Northern District of Texas.