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Home » Four Compounders Charged in Health Insurance Fraud Scheme
Four Compounders Charged in Health Insurance Fraud Scheme
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The Department of Justice has charged four people in a $17 million health insurance fraud scheme involving the sale of ketamine to patients without a valid prescription.
The indictment alleges two Texas pharmacies sold controlled substances as part of a marketing scheme, rather than for a legitimate medical need. The pharmacies sold compounded creams containing prescription drugs and ketamine to the public with pre-signed prescriptions.
The defendants face up to 20 years in prison and a possible $250,000 maximum fine, along with an additional 10 years for the conspiracy to distribute and aiding the distribution of ketamine and a possible $500,000 fine.
The charges were the result of an investigation conducted by the FDA’s Office of Criminal Investigation and the Drug Enforcement Administration.
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