An Indian-origin dentist is to pay $250,000 to settle a fraud case involving treatment of children enrolled in a government insurance for the poor, according to a federal prosecutor in Texas.

Akhil Reddy agreed to pay the amount to resolve the governments' claims in the case involving dental practices in Texas that he party owned, John Parker, the Northern Texas federal prosecutor announced on Monday.

A total of $8.45 million was recovered by the government from him, four other dentists and a manager of the practice, the prosecutor said.

Between 2009 and 2014, their dental practices submitted false claims to Texas Medicaid for single-surface fillings in children that were not done and allegedly kickbacks were paid to the patients, their families and marketers, according to the prosecution.

Medicaid is the government health insurance programme for the poor.

A whistle-blower who worked for the practices, Veronica Garcia, is to receive a reward of $1.5 million for exposing the fraud.