GRAND RAPIDS, MI - A Michigan pharmaceutical sales representative was sentenced to a year in prison for agreeing to have expensive and medically unnecessary pain creams and patches prescribed to Michigan State University employees filled by pharmacies in Mississippi.
U.S. District Judge Robert J. Jonker sentenced Daniel Brown, of Dimondale, to 12 months and one day in prison on a health care fraud conspiracy charge Monday, Aug. 15. Jonker also sentenced Brown to three years of supervised release after his incarceration and ordered him to pay restitution totaling $1.26 million.
According to the U.S. Attorney’s Office Western District of Michigan, Brown admitted soliciting a local physician to sign the prescriptions and splitting commission payments that the Mississippi pharmacies paid him for directing the prescription to their pharmacies.
The pharmacies then charged MSU’s health plan $2,000 to $3,000 for each prescription.
Brown subsequently cooperated in the investigation and prosecution of the individuals operating the pharmacies who were held criminally responsible in related federal cases in Mississippi for more than $200 million in total claims paid for medically unnecessary compounded medications resulting from illegal kickbacks paid to sales representative and physicians around the country.
“Health care fraud raises costs on consumers, hurts businesses, and can subject persons to unnecessary treatment,” U.S. Attorney Mark Totten said in a statement. “Those who scheme to defraud our public and private health care providers, and those who pay and receive kickbacks to influence the generation of medical services, face aggressive prosecution, significant financial penalties, and the real prospect of prison.”
James Tarasca, special agent in charge of the FBI in Michigan, said people like Brown, who make themselves richer through fraud schemes, undermine the health care system and drive up costs for everyone.
“The FBI remains committed to working closely with our law enforcement partners to swiftly and thoroughly investigate such fraud allegations and bring criminals who engage in these schemes to justice,” Tarasca said.
The case was investigated by the FBI, the Department of Health and Human Services, Office of Inspector General and Blue Cross Blue Shield of Michigan.
Michigan State University could not be reached for comment for this story.
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