Court Rules Against Former Preston Hollow Dentist Charged with Medicaid Fraud

A Dallas dentist accused of living a lavish lifestyle while fraudulently billing Medicaid has been ordered to pay nearly $12 million by a state district court judge.

State district court judge Catherine Mauzy ruled May 12 that Richard Malouf was responsible for more than 1,800 violations under the Texas Medicaid Fraud Prevention Act.

Malouf operated and founded the All Smiles Dental Centers in the Dallas area, and as accusations of Medicaid fraud mounted, he famously sued two local journalists (and a neighbor, Laura Wilson – mother of actors Owen and Luke Wilson, who he alleged helped one them) for reporting on his lavish lifestyle, which included a Preston Hollow home on Strait Lane that boasted a water park (complete with a lazy river and water slides), two movie theaters, and a ballet room. Malouf sold the home in December 2019 to Dallas developer Mehrdad Moayedi’s Crescent Estates Custom Homes.

The court also found that Malouf fraudulently billed Medicaid for services that were provided by a different doctor that included billings he filed while on vacation in another country.  

“Identifying and preventing Medicaid fraud continues to be a top priority for the Office of the Attorney General. Misconduct like this compromises the integrity of the Medicaid program and must be stopped as soon as it is discovered,” said Attorney General Ken Paxton in a statement Thursday. “I am proud of this recovery of taxpayer money. My office is, as always, committed to ensuring that Medicaid dollars are preserved for those who need it most.”  

The order holds Malouf liable for about $12 million, plus attorney and court fees.

D-1-GV-12-000863 Order on S… by PeopleNewspapersDallas on Scribd

Bethany Erickson

Bethany Erickson, deputy editor at People Newspapers, cut her teeth on community journalism, starting in Arkansas. Recently, she's taken home a few awards for her writing, including a Gold award for Best Series at the 2018 National Association of Real Estate Editors journalism awards, a 2018 Hugh Aynesworth Award for Editorial Opinion from the Dallas Press Club, and a 2019 award from NAREE for a piece linking Medicaid expansion with housing insecurity. She doesn't like lima beans, black licorice or the word synergy. You can reach her at bethany.erickson@peoplenewspapers.com.

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