8 individuals charged in $157M compounding pharmacy fraud scheme

Eight Florida residents were charged in an indictment unsealed Tuesday for their alleged participation in a multi-million dollar fraud scheme, according to the Department of Justice.

Each of the eight men were charged with 12 counts of conspiracy to commit healthcare fraud and three counts of money laundering, according to the report.

According to the indictment, the co-conspirators allegedly used New Port Richey, Fla.-based A to Z Pharmacy, along with other pharmacies in the New Port Richey and Miami areas, to submit false and fraudulent reimbursement claims for prescription compounded medications to Medicare and Tricare.

The indictment said the prescriptions were not based on legitimate provider recommendations. The reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes and a misuse of patient information, according to the report.

Through the scheme, the defendants allegedly submitted approximately $633 million in claims for prescription compounded medications and received roughly $157 million in reimbursement based on the claims, according to the report.

The co-nspirators allegedly relied on shell companies to transfer and disburse the money in order to hide their involvement in the scheme, according to the indictment.

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