Six months after the original charges were filed in federal court, 9 of 16 defendants in a massive healthcare fraud scheme were sentenced to lengthy jail terms ranging from 2 to 15 years, along with being hit with asset forfeitures of over $30 million. Later hearings will determine additional amounts to be paid in restitution.
Over a period of two years, the defendants operated a number of business entities, including Numed Care LLC, ClinicalCorp, LLC, RX of Boca, and American Custom Compounding Pharmacy, which purported to compound medications for specific, individualized patients. In fact, the defendants were compounding medications in bulk and fraudulently obtaining reimbursement from health insurance providers for drugs they claimed were being provided, as required by law, to patients with individualized prescriptions. The scheme was further advanced by kickbacks to physicians who were provided with pre-printed prescription pads for the issuance of the compounded medications. Health insurers wound up compensating the defendants for the cost of the fraudulently prescribed and bulk-compounded medications. All in all, the scheme netted the defendants over $172 million.
Though the scheme was incredibly lucrative, it was also extremely short-lived—lasting only two years before investigators from the U.S. Attorney’s Office, DEA, IRS, and Broward State Attorney uncovered the scheme and leveled the charges that have now sent 9 of the 16 to prison for quite a long time. With the amount of attention being paid to health care fraud nationwide, from the federal government on down, even very complex schemes like this one are not remaining in operation for long before they draw the notice of investigators from any number of agencies.