Houston Pharmacy Owner Convicted in $160 Million Healthcare Fraud Scheme

The Medicaid Fraud Control Unit (MFCU) of Attorney General Ken Paxton’s office secured a significant conviction against 59-year-old Houston resident Mohamad Mokbel, who was found guilty of 15 counts of healthcare fraud for orchestrating a large-scale pharmaceutical-compounding fraud operation.

From 2014 to 2021, Mokbel, through his company 4M Pharmaceuticals, fraudulently billed government healthcare programs for medically unnecessary topical creams and other medications, leading to over $160 million in illicit claims. Mokbel used straw owners to operate 14 pharmacies, where he purchased personal information of beneficiaries and submitted falsified prescriptions to maximize profits.

Mokbel faces up to 20 years in federal prison and could be ordered to pay restitution of up to $160 million. The investigation was led by the MFCU team, in collaboration with the FBI, IRS Criminal Investigation, Homeland Security Investigations, HHS-OIG, and the FDA. The case was prosecuted by Assistant U.S. Attorneys Kathryn Olson and Adam Goldman.

Since 2021, the MFCU has recovered more than $612 million for Texas taxpayers.