Texas pharma CEO charged in $134M scheme

Mohamed Mokbel, CEO of 4M Pharmaceuticals, was arrested March 9 for his alleged role in a $134 million healthcare fraud scheme, according to the U.S. Justice Department

4M Pharmaceuticals was the parent company for several pharmacies in Houston, Fort Worth, Texas, and South Florida. In addition to serving as CEO of 4M, Mr. Mokbel allegedly had ownership interest in the subsidiary pharmacies. 

According to the indictment, 4M Pharmaceuticals operated a call center that offered patients nationwide medically unnecessary diabetic supplies and topical creams. If the patient refused the offer, 4M allegedly billed the patient's insurance plan anyway. In some cases, 4M billed for prescriptions dispensed after a patient's death, according to the indictment. 

The indictment further alleges that 4M sent fax requests for prescriptions to physicians that patients did not authorize. The company also allegedly sent prescription requests to physicians for dead patients. 

From Dec. 13, 2013, to March 3, 2020, 4M received more than $134 million in payments from government and commercial payers based on fraudulent claims, according to the indictment. 

Mr. Mokbel, 56, of Houston, is charged with conspiracy to commit healthcare fraud, healthcare fraud and money laundering. His accountant, Fathy Elsafty, 62, of Houston, was also arrested March 9 and faces the same charges.  


More articles on legal and regulatory issues:
Texas healthcare CFO sentenced to prison for defrauding IRS
Michigan healthcare CEO gets 15 years in prison for $150M fraud
Texas physician sentenced to decade in prison for role in $10M scheme

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