March 17, 2025 | JacobiJournal.com — Insurance fraud investigations by the Texas Department of Insurance’s (TDI) Fraud Unit successfully recovered nearly $58 million in court-ordered restitution last year, targeting major cases that affected both insurance companies and consumers.
In 2024, more than 20 investigators from the Texas Department of Insurance’s Fraud Unit examined over 350 allegations of insurance fraud, prioritizing cases with the greatest financial impact. The agency employs advanced data analytics and cross-agency collaboration to identify suspicious claims, uncover complex schemes, and build strong legal cases. By aggressively targeting fraudulent activities, TDI not only recovers restitution for insurers and consumers but also helps stabilize insurance premiums and protect legitimate policyholders from the consequences of widespread fraud. This proactive approach underscores the importance of continued vigilance in detecting and preventing insurance fraud throughout the state.
TDI’s Aggressive Fraud Crackdown
More than 20 investigators across Texas examined over 350 insurance fraud allegations, prioritizing cases with the highest financial impact. By cracking down on fraudulent claims, the agency aims to prevent premium hikes for policyholders.
“If we recoup restitution for insurance companies and consumers, hopefully that causes less of an increase in premiums,” said TDI attorney Kyson Johnson. “Those companies and consumers are no longer exposed to the fraud.”
Dallas Doctors Caught in Fraud Scheme
One high-profile investigation led to the takedown of Dallas-based doctors Desi and Deno Barroga. The duo, both 51, were indicted in November 2023 and pleaded guilty in May 2024 to conspiracy to commit healthcare fraud. They had been overprescribing opioids and falsely billing health plans for millions of dollars.
“These doctors exploited drug users’ vulnerabilities, requiring them to submit to monthly visits in exchange for controlled substance prescriptions, then billing their insurance providers for services the patients did not need nor receive,” said U.S. Attorney Leigha Simonton in September 2024. “In a bizarre attempt to cover up their crimes, the defendants feigned giving injections without actually piercing the patients’ skin.”
A TDI investigator played a key role in assisting the FBI and other agencies in building a criminal case. As a result, a U.S. district judge sentenced the doctors to prison and ordered them to pay $9 million in restitution. Additionally, both were stripped of their medical licenses.
Fighting Fraud
The 2024 results from Texas highlight the critical role of robust insurance fraud investigations in protecting both consumers and insurers. By recovering millions in restitution and prosecuting high-profile cases, TDI demonstrates that fraudulent activities will not be tolerated. Consumers play a key role as well—reporting suspicious claims can help prevent further losses and reduce the financial burden on honest policyholders. Staying vigilant and informed ensures that insurance fraud schemes are identified early and addressed effectively, maintaining the integrity of the state’s insurance system.
For more information on reporting insurance fraud and protecting yourself from fraudulent schemes, visit the Texas Department of Insurance Fraud Reporting Page.
FAQs: Insurance Fraud
What are Texas insurance fraud investigations?
The investigations are efforts by the Texas Department of Insurance’s Fraud Unit to detect and prosecute instances of insurance fraud across the state.
How much restitution was recovered from fraud cases in Texas in 2024?
In 2024, Texas investigators recovered nearly $58 million in court-ordered restitution from various insurance fraud cases.
Who were the key individuals involved in the Dallas healthcare fraud case?
Drs. Desi and Deno Barroga, twin brothers running a pain management clinic in Dallas, were sentenced for their roles in a major insurance fraud scheme involving false billing and unnecessary prescriptions.
How can consumers report suspected frauds in Texas?
Consumers can report suspected insurance fraud to the Texas Department of Insurance by visiting their official fraud reporting page.
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