Texas doctor sentenced for 'traumatizing patients, abusing employees, lying to insurers'

TEXAS - A Texas rheumatologist was sentenced to 10 years in prison and three years of supervised release for a healthcare fraud scheme that involved more than $118 million in false claims and the payment of more than $28 million by insurers. He did this by falsely diagnosing patients with chronic illnesses to bill for tests and treatments that the patients did not need, according to the U.S. Department of Justice.

Jorge Zamora-Quezada M.D., 68, of Mission, also falsified patient records to support the false diagnoses after receiving a federal grand jury subpoena, according to court documents.

Massive Healthcare Fraud Scheme

Convicted:

Following a 25-day trial, Zamora-Quezada was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud, and one count of conspiracy to obstruct justice. In addition to his prison term, Zamora-Quezada was ordered to forfeit $28,245,454, including 13 real estate properties, a jet, and a Maserati GranTurismo.

Unnecessary Medication Caused Debilitating Side Effects

Big picture view:

Evidence revealed at the trial showed Zamora-Quezada falsely diagnosed his patients with rheumatoid arthritis and gave them toxic medications to defraud Medicare, Medicaid, TRICARE, and Blue Cross Blue Shield. The fake diagnoses made the patients believe they had life-long, incurable conditions that required regular treatment at his offices. 

He also administered unnecessary testing on his patients that included injections, infusions, x-rays, MRIs, and other procedures, all with potentially harmful and even deadly side effects, according to the U.S. Department of Justice. 

Court documents show Zamora-Quezada’s false diagnoses and powerful medications caused debilitating side effects on his patients, including strokes, necrosis of the jawbone, hair loss, liver damage, and pain so severe that basic tasks of everyday life, such as bathing, cooking, and driving, became difficult. 

As one patient testified, "Constantly being in bed and being unable to get up from bed alone, and being pumped with medication, I didn’t feel like my life had any meaning." One mother described how she felt that her child served as a "lab rat," and others described abandoning plans for college or feeling like they were "living a life in the body of an elderly person."

Other rheumatologists in the Rio Grande Valley testified at trial that they saw hundreds of patients previously diagnosed with rheumatoid arthritis by Zamora-Quezada who did not have the condition, prompting one physician to explain that for "most" it was "obvious that the patient did not have rheumatoid arthritis." 

Lavish Lifestyle

To receive payment for these expensive services, Zamora-Quezada faked medical records and lied about the patients’ condition to insurers.

Zamora-Quezada used proceeds from his crimes to fund a lavish lifestyle, replete with real estate properties across the country and in Mexico, a jet, and a Maserati.

Testimony also revealed Zamora-Quezada’s obstruction of insurer audits by fabricating missing patient files, including by taking ultrasounds of employees and using those images as documentation in the patient records. Testimony at trial established that Zamora-Quezada told employees to "aparecer" the missing records — "to make them appear." 

The other side:

Former employees also talked about being sent to a dilapidated barn to attempt to retrieve records. There, files were saturated with feces and urine, rodents, and termites that infested not only the records but also the structure.

Former employees detailed how Zamora-Quezada imposed strict quotas for procedures, leading to a climate of fear. 

According to the U.S. Department of Justice, Zamora-Quezada referred to himself as the "eminencia" — or eminence, threw a paperweight at an employee who failed to generate enough unnecessary procedures, hired employees he could manipulate because they were on J-1 visas and their immigration status could be jeopardized if they lost their jobs, and fired those who challenged him. 

"Depraved Conduct"

What they're saying:

"Dr. Zamora-Quezada funded his luxurious lifestyle for two decades by traumatizing his patients, abusing his employees, lying to insurers, and stealing taxpayer money," said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. "His depraved conduct represents a profound betrayal of trust toward vulnerable patients who depend on care and integrity from their doctors. Today’s sentence is not just a punishment—it’s a warning. Medical professionals who harm Americans for personal enrichment will be aggressively pursued and held accountable to protect our citizens and the public fisc."

"Through the false diagnoses and excessive false billing, Dr. Zamora-Quezada abused both patient trust and public resources," said Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "It is imperative to investigate and address this form of fraud — not only to protect vulnerable individuals from harm but to uphold the integrity of the federal health care system and safeguard the use of public funds."

"The FBI is dedicated to working with all of our partners to address healthcare fraud," said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. "This case was not only a concern to us because of the financial loss — the physical and emotional harm suffered by the patients and their families was alarming and profound. We hope this significant sentence will help bring closure to the many victims in this case."

TexasCrime and Public Safety