The Department of Justice, together with the United States Attorney’s Office for the Middle District of Florida, announces the charging of eight individuals with conspiracy to commit health care and wire fraud. Additionally, three of those eight individuals were also charged with three money laundering counts. Several of these defendants – hailing from New Port Richey, Boca Raton, Fort Lauderdale, and Parkland – were arrested on August 9, 2016, and had their initial appearances in federal courts in the Middle and Southern Districts of Florida.
According to the Department of Justice, the co-conspirators allegedly used pharmacies located in New Port Richey and Miami to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare, and Tricare from October 2012 through December 2015. These claims for reimbursements resulted in alleged illegal kickbacks and bribes, with some prescriptions not based on legitimate physician-patient relationships.
The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on these claims. The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.
This indictment is the latest in a string of high profile arrests targeting individuals related to compounding pharmacies. As former federal prosecutors, the attorneys at Stumphauzer & Sloman have experience handling these types of cases. If you would like to speak with our attorneys please call 305-371-9686.