Texas pharmacy owner indicted in $10M Medicare fraud scheme

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The pharmacy was charging unecessarily high prices on medicationt to get thousands and thousands of dollars. 

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A Texas pharmacy owner was indicted in a Georgia grand jury on Thursday, August 4, for a drug price scheme where he generated $10 million through unnecessary, expensive prescriptions he obtained through bribes. The Boerne man, Lucky S. Ott Jr., 44, was indicted on one count of conspiracy, alleging he bribed doctors to jot down prescriptions for expensive drugs. 

Those expensive drug prescriptions were then reimbursed through insurance firms, said David Estes, U.S. attorney for the Southern District of Georgia, in a news release. Ott was the owner of Boerne Drug. The indictment alleges that Ott and his co-conspirators committed this drug price fraud on patients in Georgia. 

The Georgia patients’ information was obtained through the fraudulent use of a telemedicine call center. Boerne Drug would then fill those prescriptions, which were often topical creams and gels, and send those unnecessary drugs to patients and collect the reimbursements from insurance firms. 

Ott and his co-conspirators collected $10 million through the scheme from the elderly people on Medicare, in addition to military members and veterans on Tricare. They paid greater than $1 million in bribes and kickbacks.

If convicted, Ott can receive as much as 15 years in federal prison together with financial penalties and up to 3 years of supervised release after serving time. No parole is obtainable within the federal system, based on the news release. 

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