Federal prosecutors say Dr. Joseph A. Montes and others billed a federal health program for thousands of office visits that allegedly never occurred.
HOUSTON, TX — A Houston physician has been arrested and indicted in an alleged $30 million COVID-19 fraud scheme involving claims for medical visits that federal prosecutors say were never provided.
Dr. Joseph A. Montes, 66, was taken into custody after a federal grand jury returned a 12-count indictment Sept. 30, according to the U.S. Attorney’s Office for the Southern District of Texas. The indictment has since been unsealed. Montes made an initial appearance before U.S. Magistrate Judge Christina Bryan on Oct. 6.
Prosecutors allege that from 2020 through 2022, Montes and others submitted false claims to the U.S. Department of Health and Human Services’ Health Resources and Services Administration, or HRSA. The claims were allegedly for office visits that never took place. Authorities say approximately $30 million was billed and about $20 million was paid.
Montes owned and operated two Houston medical practices, Joseph A. Montes MD & Associates, P.A. and Montes Medical PLLC, according to court documents cited by federal prosecutors. Investigators allege Montes allowed co-conspirators to operate pop-up COVID-19 testing locations under his name. Patients went to the locations for nasal swab tests, but prosecutors say the operators also billed the federal program for office visits.
The indictment alleges the clinics submitted unusually large numbers of claims. On approximately 29 dates, prosecutors say the clinics submitted more than 3,000 claims for evaluation and management services. On Dec. 1, 2021, the clinics allegedly submitted more than 9,000 claims in one day. That volume would amount to roughly one patient visit every nine seconds over a full 24-hour period, according to the U.S. Attorney’s Office.
Federal authorities also allege that Montes used proceeds from the scheme for expensive purchases at a luxury automobile dealership and Tiffany & Co. The allegations are part of the government’s case and have not been proven at trial.
The indictment includes charges involving conspiracy, wire fraud and monetary transactions involving proceeds allegedly derived from unlawful activity. If convicted, Montes could face up to five years in federal prison on the conspiracy charge, up to 20 years for each wire fraud count and up to 10 years for each money laundering count. Prosecutors said he could also face a maximum fine of $250,000.
The FBI’s Houston office, the Department of Health and Human Services Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kathryn Olson is prosecuting it.
Early reports described the allegations as involving fraudulent COVID-19-related Medicare claims. The Justice Department’s subsequent announcement identifies the claims as having been submitted to HRSA, an agency within the Department of Health and Human Services, and says the alleged scheme involved about $30 million in billings, with approximately $20 million paid.
The case remains pending in federal court. An indictment is an accusation and does not establish guilt. Montes is presumed innocent unless proven guilty through the federal court process.
Author note: Last updated October 7, 2026.