Justice Scales and books and wooden gavel. Photo courtesy of Getty Images.

The former Preston Hollow neighbor and former owner of All Smiles Dental Care, Dr. Richard Malouf is scheduled to meet before the Supreme Court in his Medicaid fraud case against the state. This development follows an appeal initiated after a state district court held Malouf responsible for a $16.5 million payment in 2020.

The Malouf v. State ex rel. Ellis will have its oral argument on January 31, 2024 with the primary case arguing whether the State can conclusively establish Medicaid fraud at summary judgment and to prove the essential claim that Malouf was a scienter, a mental state in which someone has knowledge about their act being wrongful conduct.

Before the case, Malouf owned several clinics throughout the Dallas area. Malouf fraudulently billed Medicaid for services that he did not provide. In 2020, District Court Judge, Catherine Mauzy found Malouf responsible for 1,842 violations under the Texas Medicaid Fraud Prevention Act.

According to the Supreme Court, two private citizens brought the claims against Malouf for violating the Texas Medicaid Fraud Prevention Act. Both parties moved for summary judgment. The State denied Malouf’s motion, granted the State’s and awarded more than $16 million in civil penalties for the State and the private citizens. Malouf filed a petition for review and the Court granted it on Friday, Nov. 10.

The court also found that Malouf billed Medicaid for services provided by other dentists while he was on vacation in another country or in his Preston Hollow home off of Strait Lane that was once listed at $28 million.

“I applaud my litigation team, the court, and the Health and Human Services Commission for stopping this misconduct and recovering taxpayer money,” Paxton stated. “Identifying and preventing Medicaid fraud continues to be a top priority for my office and I remain committed to ensuring that Medicaid dollars are preserved for those who most need them.”

This is not the first time Malouf has pushed for legal proceedings as he sued local journalist Candy Evans, now of Candy’s Dirt, and Laura Wilson (Luke and Owen Wilson’s mom) in 2012 amid the initial fraud case. The case was against Evans using Wilson’s house to oversee his backyard which was constructing a personal waterpark. The case was later dismissed, according to the Dallas Observer.