Corporate Compliance

Three pharmacies and their employees indicted on Medicaid fraud charges

Compliance Monitor, October 28, 2009

New Jersey Attorney General Anne Milgram announced the indictments of four pharmacists, three pharmacy technicians, and three pharmacies on charges to conspiracy to defraud Medicaid of over $2.3 million, according to an Attorney General’s Office press release.
The three Newark area pharmacies, their owners, and employees allegedly paid cash to any patient who agreed not to take their medicine. Those prescriptions were then used to fraudulently bill Medicaid for thousands of dollars, the AG said. In other instances, medicines were dispensed to patients, then sold back to the pharmacy for a share of the Medicaid reimbursement, according to the AG.
All 10 defendants are charged with conspiracy, healthcare claims fraud, and Medicaid fraud.

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