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.
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