United States v. Ma

CourtCourt of Appeals for the Fifth Circuit
DecidedJune 15, 2026
Docket25-50067
StatusPublished

This text of United States v. Ma (United States v. Ma) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Ma, (5th Cir. 2026).

Opinion

Case: 25-50067 Document: 79-1 Page: 1 Date Filed: 06/15/2026

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED June 15, 2026 No. 25-50067 Lyle W. Cayce ____________ Clerk

United States of America,

Plaintiff—Appellee,

versus

Dongxin Ma; Ma Acupuncture Center, P.C.,

Defendants—Appellants. ______________________________

Appeal from the United States District Court for the Western District of Texas USDC No. 1:22-CV-145 ______________________________

Before King, Higginson, and Wilson, Circuit Judges. Stephen A. Higginson, Circuit Judge: The United States sued Defendants-Appellants Dr. Dongxin Ma and Ma Acupuncture PC (together, “the defendants”) under the False Claims Act (“FCA”) for allegedly defrauding the government by submitting inflated reimbursements for services provided to veterans. The parties reached significant agreement at pre-trial mediation, the validity of which is at issue here. The district court concluded that the parties reached a final agreement at mediation, binding as to all of the settlement’s material terms, and that the Case: 25-50067 Document: 79-1 Page: 2 Date Filed: 06/15/2026

No. 25-50067

additional terms in a subsequently submitted written agreement were immaterial. The central question on appeal is whether the district court abused its discretion in so concluding. Assessing the district court’s decision under this deferential standard, we AFFIRM. I. A.

In February 2022, the United States sued Dr. Dongxin Ma and Ma Acupuncture PC under the False Claims Act for allegedly defrauding the government by submitting inflated bills for acupuncture services to the Department of Veterans Affairs (“VA”). The government alleged that the VA paid the defendants nearly $1.3 million to which they were not entitled. The government sought approximately $3.8 million in treble damages and nearly $20 million in civil penalties. The defendants denied liability, asserting that they lacked the scienter required under the statute and that their billing practices followed a “good-faith understanding” of permitted procedures. On September 13, 2023, the parties attended mediation to fulfill an alternative dispute resolution (“ADR”) requirement under the Western District of Texas’s local rules. Patrick Keel—a private mediator in Austin, Texas, and former state district court judge—presided over the mediation. All parties were represented by counsel. Assistant U.S. Attorneys Thomas Parnham and Liane Noble represented the United States; Sean Teare represented Dr. Ma and his company. Dr. Ma also attended. The parties do not dispute that Mr. Teare and counsel for the United States reached significant agreement at mediation. At a later hearing before the district court, Dr. Ma, Mr. Teare, and AUSA Parnham testified that the discussion at mediation included agreement about the following terms: (1) the defendants would pay the government $2.3 million over 42 months; (2)

2 Case: 25-50067 Document: 79-1 Page: 3 Date Filed: 06/15/2026

the defendants would make an initial payment of $100,000; (3) the government would dismiss its lawsuit and release the civil claims it had asserted upon receipt of the settlement amount; (4) Dr. Ma would satisfy the payment obligations by making reasonable efforts to sell certain real property; and (5) the government could place liens on certain properties. At the conclusion of the mediation, the parties met and shook hands. AUSA Parnham explained that he would send Mr. Teare a written agreement reflecting the settlement and incorporating other “standard terms.” Dr. Ma did not tell the government that he disagreed, nor did Mr. Teare. After the mediation, on September 19, 2023, the United States filed a notice of settlement, which provided: Plaintiff United States of America and defendants Dongxin Ma and Ma Acupuncture Center PC have settled this case at mediation. The parties must still draft and execute a written settlement agreement, and the defendants will have sixty (60) days from execution of the agreement to make an initial payment toward the settlement amount. The government also attached the district court’s ADR summary form, signed by Mr. Keel, which stated that the case had settled during the mediation. Between September 21 and November 13, 2023, counsel for the parties corresponded via email. After multiple emails went ignored by Mr. Teare, on October 16, 2023, he and AUSA Parnham connected by phone. As memorialized in the subsequent email correspondence, the government confirmed that Mr. Teare stated that the defendants had no edits to the agreement. Despite multiple emails and phone calls in the month after, however, Mr. Teare never returned a signed agreement or otherwise contacted counsel for the government. Dr. Ma filed no objection or motion

3 Case: 25-50067 Document: 79-1 Page: 4 Date Filed: 06/15/2026

with the district court expressing disagreement with the settlement or otherwise contesting the proposed settlement notice docketed months earlier. B. On November 18, 2023, the United States moved to enforce the written settlement agreement or, in the alternative, for summary judgment. Along with its motion, the government attached a written agreement, which it asserted contained the “terms agreed to at mediation as well as standard terms and conditions found in settlement agreements entered [into] by the Department of Justice.” The parties do not dispute that this written agreement contained additional terms that were not discussed at mediation. The defendants—represented by new counsel—opposed the motion to enforce. They argued that the proposed settlement agreement was invalid, and Dr. Ma filed an affidavit attesting that “whenever the mediator would leave the room,” Dr. Ma would tell Mr. Teare that he “did not agree with what [Mr. Teare] and the mediator had been discussing and that there was no way [he] could agree to those terms.” The defendants also included a short affidavit from Mr. Teare, in which Mr. Teare averred that the parties agreed to the “general parameters . . . in terms of the amount and . . . time of payment, but the settlement agreement was not finalized.” The defendants submitted correspondence between Dr. Ma and his former counsel, which showed that Dr. Ma had questions about the agreement, had difficulty reaching his counsel, learned after the mediation that his acupuncture insurance company would not cover the settlement, and had refinancing and tax questions. In January 2024, the district court held an evidentiary hearing on the motion to enforce, at which it heard testimony from Dr. Ma, Mr. Teare, and AUSA Parnham. The witnesses agreed that, at mediation, they resolved how

4 Case: 25-50067 Document: 79-1 Page: 5 Date Filed: 06/15/2026

much the defendants would pay the government and over what period, what the defendants’ initial payment would be, that the government would dismiss the instant suit and release its civil claims, that Dr. Ma would make a reasonable effort to satisfy the payment obligations, and that, if he did not, the government could place liens on certain properties of his. The witnesses disagreed, however, about whether any agreement reached at mediation was final and binding. Dr. Ma testified that he did not agree to anything in mediation and had only authorized his counsel to agree to a settlement of $1 million. He also testified that he was aware the government made an offer of $2.3 million, and that he told Mr. Teare that it was “impossible” to agree to the terms discussed. But he recalled that he never explicitly “disagree[d]” with them. AUSA Parnham testified that the parties reached an “oral settlement” at mediation over the “material terms” of the agreement including that Dr.

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Bluebook (online)
United States v. Ma, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ma-ca5-2026.