Dr. David M. Young, a 61-year-old physician from Fredericksburg, Texas, has received a 10-year federal prison sentence and must pay over $26 million in restitution after being convicted for his role in a large-scale Medicaid fraud scheme.
In May 2024, a jury found Young guilty of one count of conspiracy to commit healthcare fraud and three counts of making false statements related to healthcare.
Attorney General Ken Paxton’s Medicaid Fraud Control Unit (MFCU) led the investigation against the doctor. According to a March 2025 press release, the investigation exposed Young’s role in defrauding government healthcare programs by signing fraudulent prescriptions for medical equipment and genetic tests without ever seeing or treating any of the patients involved.
From 2015 to 2020, Young signed thousands of fake medical records and various prescriptions for unnecessary orthotic braces, genetic testing for cancer, and other medical services and supplies. These scam prescriptions, issued to over 13,000 Medicare beneficiaries, included undercover agents posing as patients.
As a result, healthcare programs were billed over $70 million for the fake claims made by the Texas-based doctor.
According to the Department of Justice, Young received about $475,000 for signing the fraudulent prescriptions.
Paxton strongly condemned Young’s crimes, pointing out the harm they caused taxpayers and the State’s healthcare system.
“Medicaid fraud steals hundreds of millions from the taxpayers, and I will relentlessly pursue those who exploit these programs,” Paxton said in the press release. “This doctor will pay more than $26 million in restitution and spend 10 years in jail for his actions.”
The MFCU team is credited with first uncovering the fraudulent billing. The Dallas Department of Justice Health Care Strike Force prosecuted the case.
Dr. Young’s sentence highlights Texas’s ongoing efforts to combat Medicaid fraud. Since 2020, the MFCU has recovered nearly $1 billion in settlements, judgments, and restitution, according to Paxton’s office. The unit currently receives 75% of its funding from a $22.7M federal grant for 2024, with the remaining 25% coming from the State.