4 accused of $200M insurance fraud in kickback scheme
Individuals from Mississippi were indicted for defrauding insurance companies for hundreds of millions of dollars with high-priced compounded formulations and bribing providers—including dentists, physicians and nurse practitioners—to prescribe those medications to patients they never examined.
The four people, the indictment states, conspired and engaged in a scheme to “defraud healthcare insurance companies of more than $200 million by fraudulently formulating, marketing, prescribing and billing for compounded medications produced and dispensed by pharmacies located in the Southern District of Mississippi.”
Alleged conspirators Hope Thomley and Randy Thomley, owners of a Christmas tree farm, face 47 felonies, including conspiracy, healthcare fraud and money laundering. Alleged co-conspirator Glenn Beach Jr., who has pleaded not guilty to 16 counts, was recently released on $25,000 bail. Nurse practitioner Gregory Parker, accused of falsely prescribing medications to patients he never examined, entered into a plea deal and faces eight counts. He was also recently released on $25,000 bail.
Pharmacist Jason May of Advantage Pharmacy, one of the companies associated in the scheme, and marketer Jay Schaar have already pleaded guilty.
The indictment also states the alleged co-conspirators knew collecting full copayments may result in patients refusing the medications. To circumvent the problem, they waived or reduced the copayments for the patients, while making it appear to insurance companies that copayments were being collected.
A dietary supplement comprised entirely of over-the-counter ingredients for which insurers paid “thousands of dollars per bottle" was one product the team sold, according to the indictment.
“If you want to thank me, get me rolling on dietary supplements,” the indictment alleges Parker texted to Hope Thomley. “I need to make some cash, and I think I can burn through a lot of that stuff!”
Presently the federal government is looking to seize $17 million in cash, along with six automobiles, and various real estate belonging to the Thomleys and Beach, which were frozen in the civil case.
As a senior news writer for TriMed, Subrata covers cardiology, clinical innovation and healthcare business. She has a master’s degree in communication management and 12 years of experience in journalism and public relations.