State rep, others plead not guilty in connection with alleged Medicaid fraud scheme
MCALLEN — State Rep. Tara Rios and seven other Rio Grande Valley dentists indicted on Medicaid fraud charges last week appeared in federal court Tuesday to enter “not guilty” pleas.
Rios, a Democrat who has held the District 43 Texas House seat since 2009, is accused in the indictment of receiving kickbacks for referring Medicaid patients to McAllen dentist Gary Morgan Schwarz.
During Tuesday’s court proceedings, Rios told the court that she has reverted to her maiden name because her divorce from Dr. Richard Ybarra had been finalized. Her legal last name is now Rios.
The indictment accuses Rios, 38, of receiving about $12,000 from Schwarz in connection with three Medicaid patients who prosecutors say she referred to his practice, Valley Oral and Maxillofacial Surgery.
Medicaid is a federal-state program that helps pay for health care for the needy, aged, blind and disabled and for low-income families with children.
“Dr. Rios is not accused in the indictment of fraudulent billing,” Rios’ lawyer Robert Reed of Houston said after Tuesday’s arraignment. “She has been accused of performing unauthorized services.”
The indictment alleges that the incidents involving Rios took place in 2008 between the March primary when she defeated incumbent Juan Escobar, D-Kingsville, and the November general election.
Rios represents District 43, which had been previously held by Texas political legend Irma Rangel.
District 43 includes northern Cameron County, as well as Willacy, Brooks, Jim Hogg, Kleberg and Kenedy counties.
Rios lost her re-election bid to J.M. Lozano of Kingsville in the Democratic primary in March this year.
Other dentists appearing in U.S. Magistrate Dorina Ramos’ courtroom in connection with the fraud charges were Renee L. Thornton, Magdalena Garza Cazares, Diana Woo Paparelli, Colbert J. Glenn, Willis David Egger and Reynaldo Casares.
All eight dentists were named in the indictment that was unsealed last week. They were scheduled to appear again in U.S. District Judge Randy Crane’s courtroom for a July 30 pretrial hearing, Ramos said Tuesday.
Rios was released on a $100,000 unsecured bond, which she posted last week.
Reed, her attorney, took issue Tuesday with one of the conditions of Rios’ bond agreement, which prohibits her from seeing Medicaid or Medicare patients until further notice.
Ramos told Reed to file a written appeal.
The Texas State Board of Dental Examiners cannot say whether it is investigating Rios, the group’s attorney said.
“We would take action, if we have the evidence that we need,” said Joy Sparks, general counsel for the board.
Rios faces five years in prison and a fine of no more than $25,000 on each count if convicted.
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Corey Ryan is a reporter for the Valley Morning Star in Harlingen.
