9,000 Claims in One Day: Houston Doctor Charged in Alleged $30 Million COVID-19 Testing Billing Scheme

Published Oct. 15, 2026. Case statuses are current as of that date.

During the pandemic, pop-up COVID-19 testing tents appeared in parking lots across the country, often promising free tests. Federal prosecutors in Houston allege that behind some of those tents, a doctor's clinics billed the government for office visits that never happened.

Dr. Joseph A. Montes, 66, a Houston physician, has been charged in a 12-count federal indictment with conspiracy to defraud the United States, five counts of wire fraud and six counts of money laundering, according to the U.S. Attorney's Office for the Southern District of Texas and court records reported by Houston Public Media [1][2].

Important: These are allegations. Montes has not been convicted and is presumed innocent unless and until proven guilty in court. As the U.S. Attorney's Office put it, "An indictment is a formal accusation of criminal conduct, not evidence" [1].

How the alleged scheme worked

According to the indictment as described by prosecutors [1]:

1. The clinics. Montes owned and operated two Houston clinics, Joseph A. Montes MD & Associates, P.A. and Montes Medical PLLC.
2. Pop-up sites under his name. He allegedly allowed co-conspirators to run pop-up COVID-19 testing sites under his name. Patients came for nasal swab tests.
3. Billing for visits that didn't happen. The co-conspirators allegedly billed the Department of Health and Human Services' Health Resources and Services Administration (HRSA) for office visits, though patients received no medical treatment beyond testing [2].
4. "Impossible" volume. On about 29 dates, the clinics allegedly submitted more than 3,000 claims for evaluation and management services. On Dec. 1, 2021, they allegedly submitted more than 9,000 claims in one day, roughly one patient visit every nine seconds over a 24-hour period.
5. The money. From 2020 to 2022, Montes and others allegedly billed HRSA about $30 million, and HRSA paid about $20 million. Prosecutors allege he spent proceeds at a luxury car dealership and Tiffany & Co.

The claims went to HRSA's COVID-19 Uninsured Program, which covered testing and treatment for people without insurance so they would not get a bill, Medical Daily reported. Some early reports described the case as Medicare fraud, but official filings say the claims went to HRSA, which generally paid at Medicare rates under a separate program [3].

The person charged

Dr. Joseph A. Montes, 66, Houston [1]

• Indicted: Sept. 30, 2026, by a federal grand jury; unsealed after his arrest.
• Arrest and first appearance: FBI Houston arrested him and he appeared before U.S. Magistrate Judge Christina Bryan. KPRC and Houston Public Media, citing the FBI, reported that he was arrested and appeared in court on Monday, Oct. 5; the U.S. Attorney's Office's Oct. 6 release said his initial appearance was "at 10 a.m. today" [4][2][3].
• Maximum penalties if convicted: five years for conspiracy, 20 years per wire fraud count, 10 years per money laundering count, and a possible $250,000 fine.
• Defense: Houston Public Media reported that, as of Oct. 6, no defense attorney was listed in court records [2]. We found no public response from Montes. No plea had been reported in the sources we reviewed.
• Investigators: FBI Houston, HHS Office of Inspector General, and the Texas Attorney General's Medicaid Fraud Control Unit. Assistant U.S. Attorney Kathryn Olson is prosecuting.

The alleged co-conspirators have not been publicly identified [2].

Why patients should care

Programs meant to cover uninsured patients during an emergency are a target because patients often never see a bill or an explanation of what was charged in their name. A test you received in a parking lot could be billed as something much bigger, using your name and personal information.

Red flags at testing sites and clinics

• A free test or screening that asks for your Social Security number, insurance card or Medicare number when it shouldn't need them.
• Paperwork describing services you didn't receive, such as an office visit when you only had a swab.
• Explanation of Benefits statements, or letters from a federal program, for dates you weren't seen.

What to do if you're concerned

1. Read every Medicare Summary Notice and insurance Explanation of Benefits. Question charges for visits you don't recognize.
2. Ask testing sites who operates them and which provider will bill.
3. Report suspected health care fraud to the HHS Office of Inspector General at oig.hhs.gov or 1-800-HHS-TIPS.
4. Report Medicaid fraud in Texas to the state attorney general's Medicaid Fraud Control Unit.

Case status (as of Oct. 15, 2026)

Defendant	Court	Status as of Oct. 15, 2026	Source
Dr. Joseph A. Montes, 66, Houston	U.S. District Court, S.D. Tex.	Charged: indicted Sept. 30, 2026 (conspiracy, 5 wire fraud, 6 money laundering); arrested Oct. 5; initial appearance held; no plea or trial date reported; presumed innocent	[1], [2], [4]

Those not convicted are presumed innocent. Statuses can change.

Sources

1. U.S. Attorney's Office, Southern District of Texas, "Local physician indicted in $30 million COVID-19 fraud scheme," Oct. 6, 2026 (also summarized by HHS-OIG). https://www.justice.gov/usao-sdtx/pr/local-physician-indicted-30-million-covid-19-fraud-scheme
2. Kyle McClenagan, "Houston doctor indicted for alleged $30M COVID fraud scheme, DOJ says," Houston Public Media, Oct. 6, 2026. https://www.houstonpublicmedia.org/articles/court/2026/10/06/563686/houston-doctor-indicted-for-alleged-30m-covid-fraud-scheme-doj-says/
3. "Houston Physician Indicted in Alleged $30 Million Scheme Billing Federal COVID Program for Office Visits That Never Happened," Medical Daily, Oct. 8, 2026. https://www.medicaldaily.com/houston-doctor-indicted-30-million-covid-uninsured-program-fraud-479731
4. Brittany Taylor, "Houston doctor arrested after indictment alleges $20M COVID-19 Medicare fraud scheme," KPRC Click2Houston, Oct. 5, 2026. https://www.click2houston.com/news/local/2026/10/05/houston-doctor-arrested-after-indictment-alleges-dollar20m-covid-19-medicare-fraud-scheme/

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