South Texas Compounders Indicted
A group of South Texans associated with a compounding pharmacy have been accused of involvement in a kickback plan that billed the federal government, commercial insurers and employers millions of dollars for allegedly false and fraudulent claims.
Prosecutors filed an indictment in Federal District Court in McAllen June 15, 2021 against the defendants, including an Edinburg physician, Mohammad I. Chowdhury, and a Pharr pharmacy owner, John A. Rodriguez. The indicted defendants also include three marketers and two office workers.
According to Fox7 Austin, the defendants have been charged with conspiracy to commit health care fraud, health care fraud, conspiracy to pay and receive illegal kickbacks, and conspiracy to commit money laundering.
The US Attorney’s Office says that Rodriguez was the owner of Pharr Family Pharmacy, which from May 2014 to September 2016, allegedly billed various federal health care programs more than $110 million, including claims that were false, fraudulent, and the result of illegal kickbacks.
According to the indictment, Mohammad Chowdhury, Flores and DeLaCruz were purported marketers for the pharmacy who were the conduits for several million dollars in kickbacks relating to the referral of prescriptions for high-reimbursing compound drugs to the pharmacy. In numerous instances, the marketers allegedly received kickbacks from Rodriguez, which they shared with referring physicians.
Dr. Chowdhury, a physician with the Center for Pain Management in Edinburg, allegedly paid kickbacks to his father for referring prescriptions to the pharmacy, including prescriptions for high-reimbursing compound drugs not medically necessary or what patients wanted.
Gaona and Salinas, employees at the practice, are charged with conspiring to pay and receive kickbacks and conspiracy to commit money laundering in connection with their alleged receipt of kickbacks to help coordinate the flow of prescriptions from the medical clinic to the pharmacy.
A local news outlet, MyRGVNews reports that Rodriguez allegedly provided PFP marketers with pre-filled prescription pads intended to be given to physicians. If convicted of health care fraud and conspiracy to commit health care fraud, all named face up to 10 years in prison and a maximum $250,000 possible fine. The penalty for conspiracy to pay and receive illegal kickbacks is five years with a $25,000 maximum fine. Those charged and convicted of conspiracy to commit money laundering face up to 20 years in prison and a fine of up to $500,000.
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