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Texas pharmacy under investigation for possible health care fraud

On Behalf of | Feb 18, 2016 | White Collar Crimes

Compound pharmacies provide a helpful and often necessary service to patients and health care providers by specially compounding medications to specifically meet the needs of certaindividuals. However, a Texas compound pharmacy is under federal scrutiny after concerns of possible illegal kickbacks were raised. Allegations of health care fraud are quite serious, with potentially severe consequences for those involved.

In early operations at the pharmacy, active partners received a commission for each prescription that a physician sent over to be filled. After learning that this practice was in violation of anti-kickback laws, two of the four partners returned the commission money to the business. The other two are currently facing a civil lawsuit for allegedly scamming the pharmacy out of millions of dollars. Later on, the pharmacy’s parent company restructured and brought in outside investors — in particular, physicians.

Invested physicians supposedly received financial compensation for having patients fill their prescriptions at that particular pharmacy. An outside accountant and tax consultant who worked with the pharmacy claimed that physicians were actually required to send their prescriptions to the pharmacy in order to remain preferred shareholders. Additionally, the pharmacy might have also formed close relationships with pharmaceutical sales reps who then encouraged doctors to use the facility for prescriptions.

While no health care fraud charges have been filed yet and the FBI has not explicitly confirmed the investigation, one expert strongly believes that indictments will appear sometime within the next year. When Texas defendants are faced with the overwhelming probability of criminal charges, getting a head start on possible defense strategies is often a good idea. Starting this process early on can give defendants the freedom to explore a number of different options and possibilities that can help them achieve the best possible outcome in the event that charges are eventually filed.

Source:, “Feds investigate North Texas compounding pharmacy accused of paying doctor kickbacks”, Kevin Krause, Feb. 5, 2016