The operations of
The two-year scheme included call centers to solicit potential patients including veterans, "corrupt co-conspirator physicians," prescription pads pre-printed with refills and "test billing" of insurance companies to see what would fly, according to court documents.
Accused "organizer and supervisor"
Carroll and others waived indictment, which avoids a grand jury and is not unusual in cases where lawyers for both sides might be discussing a settlement of the charges, said Carroll's attorney,
His client is "hopeful this is going to come to an end," Bogenschutz said Friday.
Lawyers from the
Carroll and others obtained control of failing pharmacies Rx of Boca and Texas Compounding Phamacy to refer prescriptions for compounded cream medications for the treatment of pain, wounds, scars, eczema and other medical conditions, according to court records.
Between 2013 and late 2015 they hauled in about
Carroll and colleagues proceeded to "unjustly enrich themselves" by selecting ingredients in the compound medications "based upon the amount of money reimbursed by insurance providers for the ingredients and not based upon medical necessity," court documents say.
Those paying the bills ranged from private insurance companies to Tricare, a
An attorney for Stephens, 52, of
Stephens is charged with conspiracy to commit money laundering. The same charge faces
Hanson is also charged with making a materially false statement to federal law enforcement.
Charged with conspiracy to commit mail fraud and wire fraud are
Attempts to reach other defendants through attorneys were not successful.
A compounded medication is a customized combination of drugs prescribed when commercial medicine is not available or not appropriate for the patient, so it can cost more.
In this case, prosecutors said, compounded medications were prepared in large quantities for mass distribution and were "not individualized based on specific patient needs."
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