The owner of a Houston health clinic pled guilty to insurance fraud after billing for medical services – often provided to injured employees – despite having no licensed medical staff at the clinic. Instead, investigators found that the clinic was using foreign medical students to provide care.

Rosemary Phelan, the owner of Rose’s Houston Healthcare Clinic, entered a guilty plea in Harris County Court and was sentenced to seven years deferred adjudication and ordered to pay $88,000 in restitution.

A joint investigation by the Texas Department of Insurance Division of Workers’ Compensation and Texas Mutual Insurance Company revealed that Phelan’s clinic had no licensed medical providers on staff yet continued to accept patients. She would then file fraudulent workers’ compensation claims to collect from insurers.