Philadelphia physician indicted in $5M prescription fraud scheme

A Philadelphia-based physician and his employee were indicted on charges of conspiracy to distribute controlled substances, distribution of controlled substances, healthcare fraud and money laundering, according to the Department of Justice.

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The indictment alleges Clarence Verdell, MD, of Voorhees, N.J., opened a clinic in Philadelphia and participated in an illegal scheme to sell prescriptions for Suboxone and Klonopin in exchange for monetary payments.

Dr. Verdell allegedly did not conduct medical examinations or mental health exams required by law in order legally prescribe the substances, according to the report.

The indictment accuses Dr. Verdell of providing false information to health insurance companies so patients could bill the prescriptions to their insurers, according to the report.

The other defendant indicted, Rochelle Williams-Morrow, allegedly used Dr. Verdell’s prescription pad to sell prescriptions to patients when the physician was not present.

The lawsuit claims Dr. Verdell illegally sold over $1 million worth of controlled substances.

Each defendant faces possible prison time, fines and restitution, among other penalties, if convicted.

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