Former Preston Hollow Dentist Liable for $16.5 Million for Medicaid fraud

Former Dallas-area dentist Dr. Richard Malouf has been ordered to pay close to $16.5 million for filing fraudulent Medicaid claims while running his now-defunct orthodontic clinics.

On Tuesday, District court judge Catherine Mauzy’s final judgment held Malouf responsible for 1,842 violations under the Texas Medicaid Fraud Prevention Act. Mauzy granted a summary judgment in May.

Malouf, who owned All Smiles Dental and Orthodontics clinics throughout the Dallas area, fraudulently billed Medicaid for services provided by a different doctor, including billings he filed himself while vacationing abroad. 

While committing Medicaid fraud, prosecutors said Malouf lived extravagantly at his Preston Hollow home. His home on Strait Lane (which has since been sold to Crescent Estate Custom Homes) boasted an extensive backyard waterpark complete with water slides and a lazy river, two movie theaters and a ballet room. Malouf also famously sued local journalists and various media outlets for defamation, as well as his neighbor, Laura Wilson (mother to actors Luke and Owen Wilson), for abetting the paparazzi.