The Department of Justice (DOJ) recently accused a Texas pharmacist of partaking in a scheme to defraud the government. The agency claimed the medical professional and his wife billed the federal government for over $20 million for medically unnecessary topical medications. A third medical professional also faces allegations of criminal activity but is not in custody. The police are still attempting to locate this individual.
DOJ accuses self-proclaimed “Compound King” of billing for unnecessary medications, paying off medical professionals to increase rate of prescriptions
The DOJ accused the three of working together to develop a business that provided pain medications tailored for individual patient’s medical needs. The agency further states the accused used illegal payments to encourage medical professionals to use their services. To support the claim, the DOJ provided evidence the accused attempted to disguise illegal kickback payments as legitimate “marketing” expenses.
The pharmacist maintained his innocence and took the case to court.
Federal jury finds in favor of government
After a six-day trial, a federal jury convicted the accused pharmacist of the following:
- Health care fraud — 11 criminal counts
- Wire fraud — 3 criminal counts
- Conspiracy to commit health care fraud
- Conspiracy to commit money laundering
The money laundering conviction comes with up to 20 years imprisonment. The conspiracy to commit health care fraud, health care fraud and wire fraud come with ten years imprisonment for each charge. As a result, the pharmacist could face well over a hundred years in prison. Sentencing is currently scheduled for May 27, 2020.