Texas Nurse Practitioner Ordered to Forfeit $40M After Fraud

WAXAHACHIE, TX — A 43-year-old nurse practitioner from Waxahachie has been ordered to forfeit more than $40 million after being convicted in 2020 of a major fraud scheme.

The U.S. Attorney’s Office Northern District of Texas announced that Trivikram Reddy, 43, was sentenced to 20 years in prison in 2021 and will return funds he moved into foreign accounts after his conviction.

Reddy’s illegal activities were exposed after the government filed a civil forfeiture action, claiming that he and his accomplices transferred nearly $40 million in fraud proceeds to almost 200 bank accounts in India.

Authorities were able to trace the funds using forensic financial analysis and secured warrants to seize the money. On March 3, Reddy and two family members agreed to return $41,237,703.16 of the stolen money, and U.S. District Judge Ada Brown ordered it transferred to the U.S. government's custody.

According to court documents, Reddy set up a scheme to defraud major health insurance companies, including Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna.

Reddy was a licensed nurse practitioner who owned and operated medical clinics in Ellis County. He and his co-conspirators submitted false patient bills using the provider numbers of six doctors who had never treated any patients at Reddy's clinics. When federal investigators asked questions, Reddy and his staff tried to cover up the fraud by making fake medical records to support their false claims.

Reddy pled guilty to conspiracy to commit wire fraud in October 2020. He was sentenced to 20 years in prison in May 2021 and ordered to pay over $50 million in restitution to the victims of his crimes.