A federal jury in Fort Worth has convicted a Texas counselor of paying active-duty service members, veterans, and their family members to accept brain stimulation therapy they did not qualify for and, in many cases, never received. Kevin D. Curry, 64, of Frisco, was found guilty on September 24 of nine federal counts tied to a $26 million scheme against TRICARE, the military health program, the Justice Department announced the next day.
Prosecutors said Curry, a licensed professional counselor who falsely presented himself as a medical doctor, paid more than $5.5 million in kickbacks to persuade TRICARE beneficiaries to consent to transcranial magnetic stimulation, or TMS. His clinics billed TRICARE more than $26 million in false, fraudulent, and kickback-tainted claims, and the program paid about $17 million. Sentencing will take place at a later date.
The case matters beyond the dollar amounts. TMS is a legitimate treatment for depression that has not responded to medication, and prosecutors said the scheme used it to bill for care that patients did not qualify for. For military families in Texas and the Florida Panhandle who used these clinics, it also raises questions about what now sits in their medical records.
Inside the Verdict and the Kickback Scheme
Curry owned Acuity TMS of Plano, Acuity TMS of Fort Worth, and Emerald Coast TMS of Fort Walton Beach, Florida. According to evidence presented at trial, the clinics billed TRICARE for TMS that was medically unnecessary or not provided at all, and Curry used real doctors' credentials without their knowledge or consent to submit claims.
The Justice Department said Curry directed employees to fabricate medical records to hide the fraud. He spent the proceeds on hotels, a casino-themed party, and a gold-plated Tesla Cybertruck worth more than $100,000, according to the department.
"Kevin Curry shamelessly preyed on the trust of service members, veterans, and their families, siphoning millions from TRICARE through lies and coercion," said U.S. Attorney Ryan Raybould of the Northern District of Texas. The jury convicted Curry of three counts of health care fraud, three counts of offering and paying illegal health care kickbacks, and three counts of engaging in monetary transactions in criminally derived property.
Each count carries a maximum of 10 years in prison. A federal judge will set the sentence after considering the U.S. Sentencing Guidelines and other legal factors. The Defense Criminal Investigative Service, the FBI, the Texas Attorney General's Medicaid Fraud Control Unit, and the Department of Veterans Affairs Office of Inspector General investigated the case.
A Real Depression Treatment Became the Bait
TMS uses an electromagnetic coil placed against the scalp to send magnetic pulses to a targeted area of the brain. According to the National Institute of Mental Health (NIMH), the FDA cleared the first TMS device in 2008 for depression that had not improved with treatment. It has since been cleared for obsessive-compulsive disorder, migraine, anxiety that occurs with depression, and smoking dependence. In 2024, the FDA cleared it as an add-on treatment for depression in adolescents 15 and older.
A standard course is demanding. NIMH says treatment usually involves daily sessions five days a week for four to six weeks, which means a single course can generate substantial billing. Common side effects include discomfort where the coil sits, twitching or tingling of the scalp, jaw, or face muscles, mild headaches, and lightheadedness. Seizures are possible, but NIMH says a comprehensive review found the risk is low.
Coverage rules are meant to prevent misuse. TRICARE covers TMS on an outpatient basis for adults with major depressive disorder. A TRICARE West Region policy, which has applied to Texas since the region expanded in January 2025, requires prior authorization, documented moderately severe symptoms, and a lack of response to at least two antidepressants from different drug classes. Prosecutors said fabricated records were how Curry concealed the fraud.
Military Patients Faced More Than a Billing Problem
The Justice Department did not report physical injuries to patients, and NIMH describes TMS as generally low risk. The harm prosecutors described is different. Servicemembers and their relatives were paid to accept a psychiatric treatment they did not qualify for, and records were fabricated to support the claims.
That matters for people whose health records follow them through the military health system. An inaccurate diagnosis in a medical record can affect future care, and a person who genuinely struggles with depression may not have received a proper evaluation from a qualified clinician. Doctors whose credentials were used without consent were also tied to claims they never authorized.
Some questions remain open. The Justice Department release does not name patients who accepted payments or say whether any beneficiaries face legal consequences. Curry's conviction is a jury verdict, and he could appeal after he is sentenced.
Steps for TRICARE Families Who Used These Clinics
TRICARE beneficiaries who visited any of the three clinics can review their claims history and Explanation of Benefits statements for services they did not receive. TRICARE asks beneficiaries to report suspected fraud to their regional contractor, such as TriWest Healthcare Alliance in the West Region or Humana Military in the East Region.
Anyone who received TMS at these clinics and still has symptoms of depression should seek an evaluation from a TRICARE-authorized mental health provider. People should not stop any current treatment without talking to a clinician. Veterans, service members, and their families in crisis can reach the Veterans Crisis Line by dialing 988 and pressing 1.
In announcing the verdict, the Justice Department noted that its Health Care Fraud Strike Force Program has charged more than 6,200 defendants since 2007 in schemes that billed federal health care programs and private insurers more than $45 billion. MedicalDaily will report on Curry's sentence when it is handed down.
Key Questions Answered
What happened? A federal jury in Fort Worth convicted Kevin D. Curry, 64, of Frisco, on September 24 of nine counts tied to a $26 million TRICARE fraud and kickback scheme involving TMS therapy.
Who was targeted? Active-duty servicemembers, veterans, and their family members covered by TRICARE, who prosecutors said were paid to consent to TMS they did not qualify for.
What is TMS legitimately used for? It is FDA-cleared mainly for depression that has not improved with treatment, and also for obsessive-compulsive disorder, migraine, anxiety that occurs with depression, and smoking dependence.
Were patients physically harmed? The Justice Department did not report physical injuries. TMS is generally considered low risk, but prosecutors said patients were paid to accept treatment they did not qualify for, and medical records were fabricated.
What sentence does Curry face? Each of the nine counts carries up to 10 years in prison. A judge will decide the sentence at a later hearing.
What should affected beneficiaries do? Review TRICARE claims for services not received, report suspected fraud to their regional contractor, and seek a new evaluation from an authorized provider if depression symptoms continue.
Published by Medicaldaily.com
