In recent years, the department of justice has stepped up enforcement of compounding pharmacy fraud.
- Ademola O. Adebayo, 55, of Odessa, Florida, was recently sentenced to 10 years in prison for his part in a compounding pharmacy scheme that defrauded private insurers, Medicare, and TRICARE out of more than $120,000,000.
He was also slapped with other charges related to the fraud, including wire fraud and conspiracy to commit money laundering. Multiple others were charged in connection with the scheme, with sentences ranging between 12 and 66 months.
No whistleblower was announced to have participated, so the millions that were paid in fines or seized in forfeiture passed to the government.
- Wade Ashley Walters, 54, of Hattiesburg, Mississippi, was recent sentenced to 18 years in prison for his role in a compounding pharmacy scheme that prosecutors described as “the largest healthcare fraud scheme in Mississippi history” involving his pharmaceutical distribution company.
He was accused of running a massive fraud scheme that earned money by distributing compounded medications that weren’t medically necessary. The scheme allegedly defrauded the TRICARE program of more than $287,000,000.
In addition to the prison sentence, Wade was ordered to pay $287,659,569 in restitution. He also forfeited $56,565,963 to cover the amount he personally derived from the scheme.
They were charged with defrauding health care benefit programs by marketing compounded medications that were medically unnecessary. In some cases, they coached patients on how to request the company’s compounded medications.
The charges were partially resolved in a plea agreement under which the defendants agreed to forfeit more than $750,000 each and pay $4,000,000 in restitution.