All Smiles Dental Centers

[7] As of July 2012, the company was one of the largest providers of dental services in the Dallas-Fort Worth area and has about 60,000 Medicaid patients.

As a result, five years prior to 2012, the state government added $1.4 million to the funds for providing dental services to poor children.

[7] In March 2012 the company signed a corporate integrity agreement pledging to improve billing practices and employee training with regulators from the federal and Texas state governments.

[4] In an April 2012 hearing,[15] Dr. Christine Ellis, an orthodontist in the North Texas region who served as one of the auditors,[15][18] audited All Smiles claims from 2007 to 2011 and concluded that it had engaged in "overutilization" of benefits before and after the 2010 change in ownership.

[7] Sydney P. Freeberg of Bloomberg said that the executive affidavit said that "Its hand was forced in part by a Texas Medicaid action cutting off payment to some of its clinics because of allegedly “excessive” and “inappropriate” orthodontic care.

[13] The two lawsuits from the Attorney General argue that Malouf and his company committed additional fraud, patient recruiting, and overbilling and that the practices "cost the State of Texas many millions of dollars.

"[19] The state of Texas Medicaid program had put All Smiles on a payment hold due to what Stephanie Goodman, a spokesperson of the Texas Health and Human Services Commission, said was "credible evidence of fraud.

As the orthodontic operation was shut down, the company saw some patients who required emergency treatment.

[4] As of July 2012, several lawyers, including Jim Moriarty, are suing Malouf under the False Claims Act.