Medicare Fraud Strike Force Catches Nine Pharmacists in Fraud Scheme

Nine pharmacists were charged in three separate indictments for their roles in a $12.1 million health care fraud scheme executed in Detroit and Southern Ohio. The pharmacists were each charged with various count relating to health care fraud and wire fraud and conspiracy to commit health care and wire fraud.

According to a Department of Justice release, the nine defendants are licensed pharmacists and/or owners of pharmacies in Michigan and Ohio: Eastside Pharmacy Inc., Harper Drugs Inc., Wayne Campus Pharmacy LLC, Universal Pharmacy LLC, and City Drugs Pharmacy Inc., each located in the Detroit metro area, and Heartland Pharmacy LLC and Heartland Pharmacy 2 LLC, which are located in Ohio.

Using these pharmacies, the defendants billed Medicare, Medicaid, and Blue Cross Blue Shield (BCBS) for prescription medications that were neither purchased nor dispensed. The defendants also billed Medicare and Medicaid for medications that were medically unnecessary and for medications that were purportedly dispensed to deceased beneficiaries after their death.

The indictments indicate the defendants received over $12.1 million due to fraudulent claims they submitted to Medicare, Medicaid, and BCBS over the last 10 years.

The FBI and HHS-OIG investigated this case with assistance from the Michigan HHS-OIG. Trial Attorney Howard Locker of the Criminal Divisionโ€™s Fraud Section investigated the case.

The Justice Department explains that the Fraud Section leads the Medicare Fraud Strike Force.  Since its creation in March 2007, the Medicare Fraud Strike Force has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. The Strike Force maintain 15 forces operating in 24 districts around the nation. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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