$19M Fraud Case Puts FECA Medical Billing Back Under Scrutiny

Federal prosecutors allege a $19 million fraud scheme against the program that pays medical and wage benefits to injured federal workers. A grand jury in the Northern District of Texas returned a superseding indictment on Oct. 7, and prosecutors say at least $17 million in payments actually went out the door. For employers and benefits administrators, the case touches a rarely examined corner of people management: the integrity of treatment records attached to federal workers' compensation claims.

Dr. Javaria Jabeen, a licensed doctor of osteopathic medicine who owned clinics in Flower Mound and Grand Prairie, Texas, faces charges alongside Allendor Kenyon Brown, a retired U.S. Postal Service employee and former union official. Both were arrested and made initial court appearances on Oct. 14. If convicted, each faces up to 10 years in federal prison. The charges are allegations. Both defendants are presumed innocent unless proven guilty.

What does the indictment allege?

The scheme ran from 2017 to 2023, according to the indictment. Prosecutors say Jabeen, working with chiropractor Demitrious Gilmore and with Brown's help, billed the Federal Employees' Compensation Act program for items and services that were ineligible for reimbursement, medically unnecessary, or never provided. The alleged billing included:

• Knee braces claimants did not need or receive
• Physical therapy sessions that never occurred
• Platelet-rich plasma infusions allegedly never performed
• At-home ultrasonic devices allegedly never provided

Prosecutors allege the defendants and co-conspirators each received a share of the proceeds. Brown is accused of recruiting federal employees to the clinics and helping them secure claim approvals. The indictment says an entity under his control received the payments to conceal them. Neither defendant had issued a public response as of the Oct. 23 announcement.

Why does the money trail matter?

The FECA program, run by the Labor Department's Office of Workers' Compensation Programs, decides claims, pays medical expenses and wage-replacement benefits, and helps injured employees return to work. A Congressional Research Service report found the program paid $3.26 billion in benefits between July 2022 and June 2023. About $761 million of that was medical benefits, the pool fraudulent medical claims draw from. Benefits come from a congressionally appropriated fund that employing agencies later reimburse, so money lost to fraud is ultimately taxpayer money.

The case grew out of an earlier prosecution. Gilmore was charged in July 2025 as part of the National Health Care Fraud Takedown. His indictment alleged the program was billed for multiple hours of physical therapy while a claimant was undergoing knee surgery. It also described two unnamed co-conspirators. Gilmore later pleaded guilty, and the new indictment names Jabeen and Brown as those two people.

What did officials say?

U.S. Attorney Ryan Raybould said those who exploit federal programs designed to protect injured workers "undermine both the integrity of our system and the trust of the public." Labor Department Inspector General Anthony P. D'Esposito said the indictment alleges fabricated medical claims "for unnecessary services that were not performed," adding that every dollar lost to health care fraud threatens the system. Jonathan Ulrich, special agent in charge with the Postal Service Office of Inspector General, said some in the health care industry "continue to place greed over patient care."

Several questions remain open. The announcement did not say how many injured workers were treated at the clinics, whether any patients were harmed, or whether the program has corrected claim records that may now contain entries for care workers never received. That record-matching problem is the operational issue for anyone administering federal injury claims.

What can claimants do now?

Federal workers with open claims have concrete options. They can review billed charges through the Labor Department's ECOMP claimant query tool or contact their OWCP district office. Keeping appointment dates, receipts, and records of equipment actually delivered makes mismatched billing easier to spot. Workers should be cautious of anyone, including a co-worker or union contact, who promises faster claim approvals in exchange for visiting a particular clinic. Suspected fraud can go to the Labor Department OIG hotline.

Workers treated at a clinic now under scrutiny should not abandon needed care. OWCP or a treating physician can help arrange continued treatment with another provider, and questions about medications or ongoing therapy should go to a qualified clinician first. The case proceeds in federal court in the Northern District of Texas, where no plea decisions or trial date had been announced as of Oct. 23.