Pharmacy CEO sentenced for lying about $40M fraud scheme

The former CEO and president of a compounding pharmacy in Florida was sentenced to six months in prison for lying to federal agents during a healthcare fraud scheme investigation. 

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Patrick Smith, 71, helmed the pharmacy Patient Care America and met with federal agents in March 2020 amid kickback allegations. Mr. Smith pleaded guilty in July 2023 for lying to the investigators by claiming he did not play a role in hiring marketing groups and didn’t know the company was soliciting Tricare beneficiaries. 

Patient Care America paid more than $40 million in kickbacks for marketers who recruited and referred Tricare beneficiary prescriptions for expensive, unnecessary drugs to PCA. More than a dozen people have been convicted and sentenced for their role in the scheme, and the government has recovered more than $30 million in fraudulent proceeds. 

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