Pharmaceutical Employee Admits Health Care Fraud Conspiracy Targeting State Health Benefits Programs
District of
FOR IMMEDIATE RELEASE
Pharmaceutical Employee Admits Health Care Fraud Conspiracy Targeting State Health Benefits Programs
According to documents filed in this case and statements made in court:
From
The conspirators also learned that some
Gerstel recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications that were reimbursed for the highest amounts, without regard to their medical necessity. The prescriptions were then faxed to
The pharmacy paid one of Gerstel's conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Gerstel and other members of the conspiracy. Gerstel paid recruiters under him and individuals with insurance coverage to reward them for obtaining the prescriptions.
According to the information, the Pharmacy Benefits Administrator paid
As part of his plea agreement, Gerstel must forfeit
Gerstel faces a maximum penalty of 10 years in prison and a
Ten other conspirators -
Acting
The government is represented by Assistant
Defense counsel:
Attachment(s):
Topic(s):
Health Care Fraud
Component(s):
DOJ - USAO
Press Release Number:
17-426
Updated
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