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GRAND RAPIDS, MI – A federal grand jury has brought additional charges against Kim Mulder, the owner and CEO of Kentwood Pharmacy, who is accused of repackaging drugs that had been returned by nursing homes and adult foster homes, U.S. Attorney Patrick Miles announced Friday, Jan. 31.
Thirteen workers have also been charged in the long-running investigation.
A second superseding indictment says Mulder conspired with Richard Clarke, the director of sales, and Lawrence Harden, the chief pharmacist, to return, restock and re-dispense drugs that had been returned.
“By allegedly submitting claims for drugs that were misbranded, adulterated and dispensed in violation of federal and state laws, the indictment charges that the defendants defrauded Medicare, Medicaid and Blue Cross Blue Shield of Michigan,” Miles’ office said in a statement.
Related: Indictment: CEO, 8 former Kentwood Pharmacy workers charged in scheme to resell returned drugs
Related: Feds: Kentwood Pharmacy a 'pharmacy cesspool,' workers face sentencing
The indictment says the pharmacy received more than $70 million from the healthcare benefit programs. The government is seeking forfeiture of $60 million because of the alleged fraud.
Conspiracy to commit healthcare fraud is a 10-year felony.
The government contends that the defendants misbranded drugs by placing them into stock bottles, with incorrect lot numbers and expiration dates, and into vials with no lot numbers or expiration dates. They allegedly tried to conceal their actions by sorting returned drugs at a strip-mall office and a pharmacist’s basement.
Along with the additional charges, five other workers have been indicted.
Three semi-retired pharmacists have already been fined. James Orr and Thomas Verhage were ordered to pay $30,000 and Eugene Biegert $15,000 for causing drugs to be misbranded after shipment in interstate commerce.
The men did not benefit financially, but kept their jobs by taking part.
The government said patients may have received misbranded or adulterated drugs from Kentwood Pharmacy as early as 2004, through November 2010.Those who believe they received such drugs from Kentwood Pharmacy can contact the U.S. Attorneys’ Office here or call 616-808-2034.
Agencies involved in the investigation, which is ongoing, include U.S. Food and Drug Administration, FBI, Drug Enforcement Administration, Homeland Security, Internal Revenue Service and state police.
John Agar covers crime for MLive/Grand Rapids Press E-mail John Agar: jagar@mlive.com and follow him on Twitter at twitter.com/ReporterJAgar
quoted form here
GRAND RAPIDS, MI – A federal grand jury has brought additional charges against Kim Mulder, the owner and CEO of Kentwood Pharmacy, who is accused of repackaging drugs that had been returned by nursing homes and adult foster homes, U.S. Attorney Patrick Miles announced Friday, Jan. 31.
Thirteen workers have also been charged in the long-running investigation.
A second superseding indictment says Mulder conspired with Richard Clarke, the director of sales, and Lawrence Harden, the chief pharmacist, to return, restock and re-dispense drugs that had been returned.
“By allegedly submitting claims for drugs that were misbranded, adulterated and dispensed in violation of federal and state laws, the indictment charges that the defendants defrauded Medicare, Medicaid and Blue Cross Blue Shield of Michigan,” Miles’ office said in a statement.
Related: Indictment: CEO, 8 former Kentwood Pharmacy workers charged in scheme to resell returned drugs
Related: Feds: Kentwood Pharmacy a 'pharmacy cesspool,' workers face sentencing
The indictment says the pharmacy received more than $70 million from the healthcare benefit programs. The government is seeking forfeiture of $60 million because of the alleged fraud.
Conspiracy to commit healthcare fraud is a 10-year felony.
The government contends that the defendants misbranded drugs by placing them into stock bottles, with incorrect lot numbers and expiration dates, and into vials with no lot numbers or expiration dates. They allegedly tried to conceal their actions by sorting returned drugs at a strip-mall office and a pharmacist’s basement.
Along with the additional charges, five other workers have been indicted.
Three semi-retired pharmacists have already been fined. James Orr and Thomas Verhage were ordered to pay $30,000 and Eugene Biegert $15,000 for causing drugs to be misbranded after shipment in interstate commerce.
The men did not benefit financially, but kept their jobs by taking part.
The government said patients may have received misbranded or adulterated drugs from Kentwood Pharmacy as early as 2004, through November 2010.Those who believe they received such drugs from Kentwood Pharmacy can contact the U.S. Attorneys’ Office here or call 616-808-2034.
Agencies involved in the investigation, which is ongoing, include U.S. Food and Drug Administration, FBI, Drug Enforcement Administration, Homeland Security, Internal Revenue Service and state police.
John Agar covers crime for MLive/Grand Rapids Press E-mail John Agar: jagar@mlive.com and follow him on Twitter at twitter.com/ReporterJAgar
quoted form here