Nationwide Telemedicine Pharmacy Health Care Fraud

Nationwide Telemedicine Pharmacy Health Care Fraud

Five New Guilty Pleas In Nationwide Telemedicine Pharmacy Health Care Fraud Conspiracy

GREENEVILLE, TN (STL.News) Today, Larry Everett Smith, 50, of Tampa, Florida, pleaded guilty before Senior District Judge Ronnie Greer to one count of conspiracy to commit health care fraud.  Sentencing has been set for October 25, 2021 at 3:00 p.m., in United States District Court in Greeneville.  Smith faces a term of up to 10 years in prison.

The First Superseding Indictment, returned December 1, 2020, charged Smith and others with a nationwide conspiracy to defraud pharmacy benefit managers out of $174,202,105 by submitting $931,356,936 in bills to the pharmacy benefit managers for fraudulent prescriptions purchased from a telemarketing company.  The indictment alleges the conspiracy began in mid-2015 and lasted through the first months of 2018.

In a written plea agreement, Smith admitted to conspiring with Scott Roix, Mihir Taneja, Arun Kapoor, Sterling-Knight Pharmaceuticals LLC, HealthRight LLC, Alpha-Omega Pharmacy LLC, Germaine Pharmacy Inc., Zoetic Pharmacy, and Tanith Enterprises, and others to defraud pharmacy benefit managers into paying for fraudulent prescriptions for topical pain creams, vitamins, and other products. Smith agreed to pay restitution of $24,919,254 and forfeit approximately $3,052,215.

On September 26, 2018, Roix and HealthRight pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme and agreed to pay restitution of $5,000,000. 

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