Wisconsin pharmacy owner pleads no contest in fraud, illegal drug distribution scheme

Jason Kilvinger, who owned New Berlin (Wis.) Pharmacy, pleaded no contest to six felony counts accusing him of illegal drug distribution and insurance and identity fraud, according to a Nov. 10 report from Milwaukee Journal Sentinel

A no contest plea means the defendant recognizes the criminal evidence against them will probably lead to a conviction but does not explicitly admit guilt. These pleas usually come when defendants and prosecutors work together to avoid a long and expensive trial.

Mr. Kilvinger pleaded no contest to medical assistance fraud, misappropriating identification information, theft by false representation, the manufacturing or delivery of a prescription drug, making fraudulent insurance claims and possession with intent to deliver narcotics.

New Berlin Pharmacy closed in 2016 after law enforcement began a two-year investigation exploring allegations of prescription and insurance fraud, according to the Journal Sentinel.

Between 2010 and 2016, Mr. Kilvinger and pharmacist Robert Steib illegally sold or gave away nearly 85,000 hydrocodone pills and submitted fake prescriptions to 10 insurance companies for $823,000 in false revenue, according to a 2018 criminal complaint. 

In addition to the pair, five other people have been charged during the investigation, the Journal Sentinel reported. Mr. Kilvinger's hearing is slated for Dec. 2 and the court will likely consider Wisconsin's recommendation for a 15-year prison sentence and nearly $700,000 restitution payment.

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