Texas Physician Sentenced for $145M Fraud Scheme

Dr. Michael Taba received 102 months in prison for his role in a massive healthcare fraud case.

Published on Feb. 25, 2026

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Michael Taba, MD, of McKinney, Texas, was sentenced to 102 months in prison for his involvement in a $145 million scheme to defraud the U.S. Department of Labor's Office of Workers' Compensation Programs. Between May 2014 and March 2017, Dr. Taba accepted bribes and kickbacks from pharmacy owners to prescribe medically unnecessary compound creams to injured federal workers.

Why it matters

This case highlights the ongoing problem of healthcare fraud, which costs the U.S. government and taxpayers billions of dollars each year. The sentencing of Dr. Taba sends a strong message that such criminal behavior will be prosecuted to the fullest extent of the law.

The details

Pharmacies owned by Dr. Taba's co-defendants billed the DOL-OWCP and Blue Cross Blue Shield more than $145 million and were paid over $90 million for the unnecessary prescriptions referred by Dr. Taba and other medical providers. The compound creams were mixed at a cost of around $15 per prescription but billed for as much as $16,000 per prescription.

  • Between May 2014 and March 2017, Dr. Taba engaged in the fraud scheme.
  • On Nov. 16, 2023, a federal jury in the Northern District of Texas convicted Dr. Taba on one count of conspiracy to commit health care fraud and three counts of health care fraud.
  • On Feb. 24, 2026, Dr. Taba was sentenced to 102 months in prison.

The players

Michael Taba, MD

A physician from McKinney, Texas who was sentenced to 102 months in prison for his role in a $145 million healthcare fraud scheme.

U.S. Department of Labor's Office of Workers' Compensation Programs (DOL-OWCP)

The government agency that was defrauded by Dr. Taba and his co-conspirators through the unnecessary prescriptions of compound creams.

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What’s next

The judge's sentencing of Dr. Taba to 102 months in prison is expected to deter similar healthcare fraud schemes in the future.

The takeaway

This case underscores the importance of robust oversight and enforcement to combat healthcare fraud, which drains critical resources from important government programs and increases costs for all Americans.