Pharmacist, Pharmacy Marketer Plead Guilty in Compound Medication Schemes

A Mississippi pharmacist in charge of a compounding pharmacy pleaded guilty to his role in a $192 million compounded medication scheme, according to the Department of Justice (DOJ).

May, 40, was charged for his role in a scheme that defrauded TRICARE and private insurance companies out of at least $192 million in payments for medically-unnecessary compounded medications. May pleaded guilty to 1 count of conspiracy to commit health care fraud and money laundering.

According to the DOJ press release, May admitted to conspiring with others to select compounded medication formulas based on profitability, rather than effectiveness or patient need. May dispensed these medications, causing fraudulent claims to be submitted to TRICARE and other health care benefit programs, and allowing May and his co-conspirators to receive hefty reimbursements.

Another Mississippi case involving conspiracy to commit health care included fraudulent prescriptions of compounded medications. Gerald Schaar admitted to soliciting physicians and other medical professionals to write prescriptions without seeing patients. Further, Scharr conspired with others to falsify patient records to produce fake records of physician examination. TRICARE reimbursed approximately $2.3 million in false and fraudulent claims submitted by the pharmacy.

Both defendants’ sentencing has been scheduled for October 17.

Reference

Pharmacist Pleads Guilty to Health Care Fraud Charges for Role in $192 Million Compounded Medication Scheme; Pharmacy Marketer Also Pleads Guilty [news release]. DOJ’s website. https://www.justice.gov/opa/pr/pharmacist-pleads-guilty-health-care-fraud-charges-role-192-million-compounded-medication. Accessed July 27, 2017.