Owner of Memorial Compounding Pharmacy Sentenced to 27 Months in Federal Prison for Kickback Scheme

As we have reported, Khyati (Kathy) Undavia previously plead guilty in the Federal District Court for the Southern District of Texas to conspiracy to pay and receive healthcare kickbacks.  The details of that plea agreement are sealed. On October 11, 2022, the owner and pharmacist in charge of Minu Rx LTD; Plaza Medical Center Pharmacy/dba Memorial Compounding Pharmacy in Houston, was sentenced by Judge Andrew Hanen to 27 months in federal prison.

While the initial Information sought over $20M in restitution, Ms. Undavia was finally ordered to pay $12M in restitution, which was paid in full upon sentencing. Upon release she will be subject to one year supervision.

Ms. Undavia has also been associated with Minu GP, L.L.C.  Most of the kickback schemes involve prescriptions for topical compound creams/gels. While Ms. Undavia and associated entities have been named as involved parties in several federal Indictments, Informations, and lawsuits regarding kickbacks, we are not aware of any Texas state investigations or actions.  As of October 30, 2022, the Texas State Board of Pharmacy website showed Ms. Undavia’s license still active.