State Rep. Tara Rios Ybarra indicted on federal fraud charges
State Rep. and dentist Tara R. Rios Ybarra, along with several other Rio Grande Valley dentists, has been indicted for her alleged involvement in a health care fraud kickback scheme.
Rios Ybarra of South Padre Island, Diana Wo Paparelli, 57, of Pharr, and Colbert J. Glenn, 49, of McAllen, were indicted for allegedly illegally referring Medicaid beneficiaries to Gary Morgan Schwarz, also a dentist, in exchange for kickbacks, U.S. Attorney Jose Angel Moreno and Texas Attorney General Gregg Abbott announced today.
Rios Ybarra appeared this morning before U.S. Magistrate Felix Recio who ordered she be released on a $100,000 bond.
Rios received 15 percent of all Medicaid reimbursements received by Schwarz, owner of Valley Oral and Maxillofacial Surgery center in McAllen, for patients she sent his way, according to a 22-count indictment in the case.
In all, federal prosecutors allege Schwarz gave her more than $12,000 between August and November 2008.
During that same period, Rios had just come off a primary victory that elected her to a first term representing Texas House District 43, a region that includes Willacy, Brooks, Jim Hogg, Kleberg, Kenedy and parts of Cameron counties.
She was defeated this year by Kingsville businessman J.M. Lozano in March’s Democratic primary.
Staffers at Rios’ Austin office said they were preparing a statement to release later in the day. Her attorney – State Rep. Rene Olivera, D-Brownsville – could not be immediately reached for comment Wednesday afternoon.
Schwarz is also accused of billing Medicaid for procedures he never performed and those performed by unqualified dental assistants that put patient’s safety at risk.
Two employees at his McAllen office – office manager Renee Thornton and personal assistant Magdalena Garza Cazares – also face federal conspiracy and health care fraud charges for their alleged role in the scheme.
If convicted, Schwarz, Garza and Thornton each face up to 10 years in prison. Rios and the other indicted dentists face up to five years if found guilty.
For more on this story, read Thursday's Brownsville Herald.
Monitor Reporter Jeremy Roebuck contributed to this report.
