El Paso Physician Reaches $200,000 Settlement Over State and Federal Prescription Fraud Allegations

A former El Paso physician has agreed to pay a $200,000 civil settlement to resolve state and federal allegations that he improperly issued large volumes of controlled substance prescriptions and submitted claims tied to those prescriptions to government health care programs, authorities announced this week.

According to the U.S. Attorney’s Office, Dr. Brian August, who practiced medicine in El Paso, entered into a settlement resolving allegations that he violated the Controlled Substances Act, the False Claims Act, and the Texas Health Care Program Fraud Prevention Act over a multi-year period.

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Scope of the Allegations

Federal and state authorities alleged that between December 23, 2017, and May 22, 2021, Dr. August issued 255 prescriptions for controlled substances to 15 individual patients without meeting required medical and regulatory standards.

The prescriptions allegedly included a broad range of Schedule II opioids, such as morphine, fentanyl, hydrocodone, hydromorphone (including extended-release formulations), oxycodone hydrochloride extended release, tapentadol, and oxymorphone. Authorities also cited prescriptions for Schedule IV substances, including carisoprodol, zolpidem, clonazepam, alprazolam, and tramadol.

According to the allegations, Dr. August issued individual and overlapping prescriptions without adequately documenting a legitimate medical purpose, demonstrating medical necessity, or ensuring the prescriptions were issued in the usual course of professional practice, as required under Texas law and federal controlled substance regulations.

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Medicare and Medicaid Billing Issues

The United States and the State of Texas further alleged that the 15 patients involved were beneficiaries of Medicare Part D and/or Texas Medicaid, and that the prescriptions at issue were improperly billed to those programs.

Because the prescriptions were allegedly not issued for a legitimate medical purpose, prosecutors contended they were not eligible for reimbursement under federal or state health care programs. As part of the settlement:

• $994.22 is designated as restitution to the Texas Medicaid Program
• $44,380.55 is designated as restitution to Medicare Part D
• The remaining amount represents civil damages and penalties under federal and state law

The settlement resolves civil liability only and does not include criminal charges.

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Loss of Medical and DEA Credentials

As part of the settlement terms, Dr. August surrendered his DEA registration and agreed not to apply for a new registration in the future. He also affirmatively surrendered his Texas medical license, permanently relinquishing his ability to practice medicine in the state.

The Texas Medical Board had previously suspended his license during the investigation.

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Multi-Agency Investigation

The settlement was the result of a coordinated investigation involving multiple state and federal agencies, including the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Texas Office of the Attorney General, working alongside federal prosecutors.

U.S. Attorney Justin R. Simmons announced the resolution. The matter was investigated by Assistant U.S. Attorney Eduardo Castillo and resolved by Assistant U.S. Attorney Erin Van De Walle.

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Broader Enforcement Context

Federal and state authorities have increasingly pursued civil enforcement actions against medical professionals accused of improper prescribing practices, particularly where controlled substances intersect with public health programs such as Medicare and Medicaid.

While the settlement does not include an admission of liability, officials emphasized that the surrender of both medical licensure and DEA prescribing authority effectively removes Dr. August from clinical practice and controlled substance prescribing.

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Legal Notice

The claims resolved by the settlement are allegations only. There has been no determination of liability, and the settlement does not constitute an admission of wrongdoing.

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