Indictment Unsealed in $54 Million Compound Pharmacy Kickback Scheme

On June 4, 2020, an indictment was unsealed in Tampa at the U.S. District Court for the Middle District of Florida charging four Florida men with among other crimes, conspiracy to defraud the United States and paying or receiving health care kickbacks.

The charges arise out of the defendants’ participation in a multi-million dollar conspiracy aimed at defrauding TRICARE, the health care benefit program of the U.S. Department of Defense that provides health care coverage for active duty service members, the National Guard and Reserve members, retirees, their families and survivors.

compounding-service-940x600-1-300x191The indictment alleges that the co-conspirators owned and operated Florida Pharmacy Solutions Inc. (FPS) aimed at targeting TRICARE beneficiaries. Florida Pharmacy Solutions submitted claims to TRICARE for expensive prescription drugs that were specially compounded for beneficiaries, but were not prescribed legitimately, and were generated by paying illegal bribes and kickbacks.  The indictment alleges that the defendants submitted claims to TRICARE of more than $54 million for compounded drug prescriptions and that TRICARE paid out roughly $41 million to FPS.

The indictment further alleges that in excess of $20 million in health care kickbacks were paid to the co-conspirators for securing prescriptions for compounded medications for TRICARE beneficiaries which were then in turn filled by their own pharmacy, Florida Pharmacy Solutions.

The U.S. Department of Justice Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since it began in 2007, the Medicare Fraud Strike Force, has charged nearly 4,000 people who have fraudulently billed the Medicare  for more than $14 billion.

If you or someone you know is being investigated for Medicare fraud or TRICARE fraud, please call me to discuss your situation with the utmost confidentiality.

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