Houston 'Compound King' convicted in $21M healthcare fraud scheme

On March 10, a federal jury convicted a Houston pharmacist, dubbed the "Compound King," in a $21 million healthcare fraud and kickback scheme, according to the Department of Justice.

After a six-day trial, the jury convicted compounding pharmacist George Phillip Tompkins on 17 counts: 11 counts of healthcare fraud, three counts of wire fraud, and one count each of conspiracy to pay and receive kickbacks, conspiracy to commit healthcare fraud, and conspiracy to commit money laundering.

According to the Justice Department, evidence presented at trial showed Mr. Tompkins and others billed the federal government roughly $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. Mr. Tompkins and his co-conspirators submitted the bills to healthcare programs for injured federal and state employees and created a separate entity to receive payments from those programs, according to the Justice Department.  

Mr. Tompkins is scheduled to be sentenced May 27. His wife, who was also charged in the scheme, pleaded guilty in January to one count of conspiracy to pay kickbacks and is awaiting sentencing.

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