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TX authorities accuse pharmacy owner of $100M in healthcare fraud

It is never a good idea to brag on social media. Feds recently arrested the CEO of a pharmaceutical company, known for splashy posts on Facebook and Instagram that include his million-dollar mansion and multiple fancy vehicles like a red Ferrari, Bentley, and Mercedes. The officers arrested the medical professional based on allegations of healthcare fraud.

The U.S. Attorney’s Office state the owner of many pharmacies throughout Houston used his facilities to contact insured patients and offer medically unnecessary diabetic supplies as well as topic creams. The feds have accused the group of charging these patients’ insurance for these products even if the patient refused the offered products. The government further claims to have evidence of patients that were billed for products even after their death. The feds state the accused ran the scheme from 2013 through 2020 and ultimately bilked the government of over $135 million in funds from Medicare and other healthcare programs.

Did the flashy media posts lead to the arrest? Not likely. But they certainly won’t help his case. Information posted on social media can serve as evidence in these types of cases. As such, medical professionals throughout the country should use this case as a reminder to post carefully.

In addition to healthcare fraud, the accused also face allegations of money laundering. If the prosecution is able to build a successful case and get a conviction, the accused face ten years imprisonment and $250,000 in fines as well as the need to return fraudulent funds.