Goforth sentenced in federal court for money laundering - Insurance News | InsuranceNewsNet

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October 7, 2022 Regulation News
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Goforth sentenced in federal court for money laundering

Sentinel Echo (London, KY)

A former state representative for part of Laurel County was sentenced Monday on federal charges.

Robert Goforth, 46, was ordered to serve 25 months in federal prison, as well as to pay $2.7 million in restitution and $100,000 in fines. Goforth has already paid $1 million toward the total restitution, according to testimony in his case.

Goforth was indicted for healthcare fraud regarding operations from a Clay County pharmacy he owned. Prior information in the case states that Goforth's Manchester pharmacy was making larger profits than other pharmacies he owned — that being that unclaimed prescriptions were being billed to insurance companies but being placed back for future resale. Most of the patients using that pharmacy were on Medicare or Medicaid.

Information in the case states that an investigator with the Kentucky Board of Pharmacy confronted Goforth with evidence that the pharmacist at the Manchester facility was not reversing the bills for medications and was reshelving the medicines in 2015. Goforth was told that the pharmacist could face healthcare fraud charges, but still did not stop the actions. Instead, he used $17,000 of the profits from the pharmacy to purchase farm equipment from a London business. Goforth sold the pharmacy in 2016.

Goforth pled guilty to the charges in May. The plea agreement stated that he would repay $1.8 million, cannot own or operate the day-to-day business of any pharmacy or act in any capacity of a pharmacist. He was also prohibited from participating in any Medicare, Medicaid or other federal health care programs for a minimum of 5 years. Additionally, he must submit full disclosures of all financial resources, including any interests held by his wife.

Goforth resigned his position as a state legislator in 2021, prior to the federal charges being filed against him. However, state charges of strangulation and assault did follow him after a 2021 incident in which he allegedly strangled his wife during a domestic argument. That case was settled with the sentence being merged to serve at the same time of any federal prison time in the healthcare fraud case.

Goforth currently remains on bond pending designation by the Bureau of Prisons. He is scheduled to surrender for his sentence on November 18.

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