Pharmacy mogul sentenced for fraud, ordered to pay $344M

The co-owner of several compounding pharmacies and pharmaceutical distributors was sentenced Jan. 15 to 18 years in prison for his role in a multimillion-dollar scheme to defraud Tricare and private healthcare benefit programs, according to the Department of Justice

Wade Ashley Walters of Hattiesburg, Miss., was sentenced after pleading guilty to conspiracy to commit healthcare fraud and conspiracy to commit money laundering. 

Between 2012 and 2016, Mr. Walters defrauded health benefit programs by distributing compounded medications that were not medically necessary. He and his co-conspirators adjusted prescription formulas to ensure the highest reimbursement, solicited recruiters to procure prescriptions for high-margin compounded medications and paid kickbacks to clinicians to authorize prescriptions for compounded medications, according to the Justice Department. 

In addition to the prison term, Mr. Walters was ordered to pay $287.7 million in restitution and to forfeit $56.6 million that he derived from the fraud scheme. 

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