Houston ‘Ambulance’ Owners Charged in Massive Insurance Scam

The operators of KMD Healthcare Services in Houston Texas were handcuffed and taken to jail on May 24 on multiple Healthcare Fraud charges.  


According to U.S. Attorney Kenneth Magidson,  KMD owner Melvin Davies, age 28, and his brother Kevin Davies, age 27, illegally billed Medicare and Medicaid for ambulance transportation for years. It is believed the scam brought in nearly $6,000,000.

Federal prosecutors announced they are bringing a 20-count fraud indictment against the two. They believe the men perpetrated a health fraud conspiracy, by billing the government-funded health programs for ambulance services that were not medically needed and – in many cases – never actually happened.

 Investigators  learned that the Davies brothers  conducted an unprofessional transportation business out of their home, and falsified bills that indicated licensed ambulances were used, when in fact they moved patients in basic vans.

They also billed Medicare and Medicaid for services that were not detailed on ambulance run reports, which are legally required, to document patient’s symptoms and what treatments were provided during the trip to the hospital. They also inflated transportation mileage, according to prosecutors.

The brothers could get 10 years in federal prison and fines of $250,000.

The charges are the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service‘s Criminal Investigation and the Texas attorney general’s Medicaid Fraud Control Unit.

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