Pharmacy fined $39M for fraud after 7-day trial
A Florida pharmacy will pay a $39 million judgment for its role in a kickback scheme involving retired employees of the state of Connecticut.
A judge made the ruling after a seven-day trial in a Connecticut Superior Court, holding Assured RX liable for fraud and a punitive civil penalty, both of which are included in the judgment.
The lawsuit was brought by the Connecticut Attorney General’s office under the False Claims Act, which holds companies accountable for fraud involving government programs. Attorney General William Tong said the pharmacy was sending kickbacks to co-conspirators, and state taxpayers were ultimately left footing the bill.
The scheme began in 2014 when Connecticut Department of Correction employee Nicholas Maulucci and his ex-wife, Lisette Martinez, were paid by Assured to acquire compound drug prescriptions, the cost of which was covered by a state-run health plan for former and retired workers. The scheme cost the state $10 million for scar and pain treatments, along with other expensive drugs. Assured is accused of sending more than $2.6 million in kickbacks to its co-conspirators, taken from reimbursement funds.
Martinez was an employee of Assured pharmacy, Tong’s office said in an announcement.
“These defendants orchestrated an elaborate kickback scheme that cost the state nearly $10 million dollars,” Tong said in the announcement. “This decision—imposing $39 million in treble damages as well as civil penalties—sends a clear message that this state does not tolerate abuse of public funds. I want to thank the entire trial team for their diligent, determined work in this case.”
Hartford Superior Court Judge John B. Farley found the company was complicit and liable for the fraud. The case was first brought to the attention of the Attorney General in 2018, when the lawsuit against Assured was filed. The scheme ended in 2015, according to Tong.
The trial concluded in Jan. 2024, with Assured RX the only defendant that would not settle the case out of court.
The full Oct. 25 decision from Judge Farley can be found here.
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