South Florida men accused of pushing prescription drugs for kickbacks By RON HURTIBISE SOUTH FLORIDA SUN SENTINEL | MAR 19, 2021 AT 7:00 AM Compounding pharmacies create prescription creams by blending two or more drugs to form a compound that's otherwise not available from drug makers. Compounding pharmacies create prescription creams by blending two or more drugs to form a compound that's otherwise not available from drug makers. (Seasontime/Shutterstock) Two South Florida businessmen have agreed to pay $4 million to settle federal charges that they engaged in schemes to overcharge public health insurers for drugs that patients didn’t order or want. The kickback scheme enriched a long list of defendants who colluded to obtain and fill prescriptions for expensive compounded drugs and then submitted reimbursement claims to Medicare and armed-services insurer TRICARE that generated millions of dollars, according to a 2015 federal lawsuit. Advertisement Thirty-six other Florida companies named as defendants in the case, including pharmacies, health providers and marketers, previously settled charges filed under the federal False Claims Act by the United States Attorney’s Office for the Middle District of Florida. RELATED: Were you victimized by South Florida's most depraved scams? » The remaining defendants, Jack Lee Stapleton, 75, of Gulf Stream, and Jack Hunter Stapleton, 33, of Fort Lauderdale, were accused of using telemarketers to persuade patients to accept expensive compounded drugs, then paying telemedicine providers to prescribe those drugs without ever seeing the patients or conducting any meaningful medical examinations. The Stapletons, who operated numerous companies with various names in South Florida, sent the prescriptions to compounding pharmacies that agreed to pay the men half of whatever they were reimbursed, the lawsuit claimed. They focused on compounded drugs — custom-made combinations of two or more drugs — that were not mass-produced and could be invoiced for thousands of dollars per prescription. “Kickback arrangements undermine confidence in our health care system,” said Brian M. Boynton, acting assistant attorney general of the Department of Justice’s civil division, in a news release announcing the settlement. “This case demonstrates how kickback schemes often result in the provision of medically unnecessary services at the taxpayer’s expense.” Advertisement The release stated that the Stapletons’ decision to pay $4 million resolved claims that were only allegations, adding, “There has been no determination of liability.” According to the suit, telemarketers would call patients with diabetes, cardiovascular conditions and other diseases to get their consent to obtain prescriptions from associated doctors. The products usually involved creams related to treatments for pain, wounds, scars and similar conditions. RELATED: How 'outright lies' duped victims of health insurance 'scam' » The marketers persuaded physicians to prescribe compounds with high doses of the corticosteroid Fluticasone and the anti-inflammatory drug Flurbiprofen, the complaint states, because they could bill Medicare and TRICARE thousands of dollars more than for compounds made with Ketoprofen, which is as effective as Flurbiprofen but costs 72% less. One of the pharmacies received $13,497,447 for compounds containing Flurbiprofen, the suit said. If one of the participating pharmacies was unable to produce a compounded drug, it would transfer the prescription to another pharmacy and both would split the proceeds, the suit states. RELATED: How a ‘shady’ insurance lawyer sucked homeowners into his alleged ripoff scheme » The scheme ran into complications when patients began complaining to their insurers about being contacted by marketers who worked for one of the Stapletons’ companies, C.V. McDowell, and being urged to take prescriptions that they didn’t want, need or request. One patient complained that “C.V. McDowell wouldn’t stop calling her about a refill she did not want (she never wanted or requested the first one) for a wound she does not have.” Morning Update Newsletter Weekdays Start your day with the top stories in South Florida. ENTER YOUR EMAIL ADDRESS Patients became suspicious, the suit stated, because they were also told they didn’t have to remit a co-pay. According to the lawsuit, the companies involved in the scheme absorbed the patients’ co-payments to induce them into accepting the prescriptions. Waiving or reducing co-payments violates laws prohibiting kickbacks. RELATED: Moving companies with no trucks or movers can break your bank account, your stuff and your heart. Here’s how to avoid them » The scheme was exposed by Dwayne Thornton, co-plaintiff of the government’s lawsuit and former vice president of operations for one of the companies, Bradenton-based Soothe Pharmacy, charged in the suit. Thornton filed his complaint after noticing the illegal practices, fearing he would be criminally charged, and failing to persuade his bosses and principals of other companies involved in the scheme to stop illegal practices. Because the U.S. Attorney’s Office took over the case, Thornton will receive an undetermined portion of the $4 million settlement, the Department of Justice said in its news release. Ron Hurtibise Ron Hurtibise South Florida Sun Sentinel CONTACT Ron Hurtibise is a business reporter for the South Florida Sun Sentinel. A Florida resident since 1977, he covers property and health insurance, tourism, the automotive industry, and consumer topics. He is a Florida State University graduate and a former investigative reporter at the Daytona Beach News-Journal. You can call him at 954-356-4071. ADVERTISEMENT LATEST BUSINESS Virtual Broward job fair offered for unemployed hospitality and retail workers 2h Virtual Broward job fair offered for unemployed hospitality and retail workers The red-hot housing market means you’re probably in for a tax increase 11:13 AM The red-hot housing market means you’re probably in for a tax increase Fort Lauderdale cocktail lounge the Wilder changing its stripes, snares chef from Lionfish in Delray Beach 8:48 AM Fort Lauderdale cocktail lounge the Wilder changing its stripes, snares chef from Lionfish in Delray Beach These Cars Are So Loaded It's Hard to Believe They're So Cheap LUXURY SUVS | SEARCH ADS | SPONSORED Play this game for 3 minutes and see why everyone is addicted TOTAL BATTLE - TACTICAL GAME ONLINE | SPONSORED Finally - A perfect mask to breathe freely all day long. SPORTSMASK | SPONSORED All Oklahoma Low Mileage Drivers Should Claim This (Check If You Qualify) SMARTLIFESTYLETRENDS | SPONSORED Oklahoma Homeowners Are Getting a Big Pay Day in March SAVE HOMEOWNERS INSURANCE | SPONSORED SUN SENTINEL Former Miami Dolphins defender dies at age 48 DAVE HYDE SUN SENTINEL ‘The Talk’ cancels shows amid investigation surrounding Sharon Osbourne comments ALEX STEDMAN, VARIETY CHICAGO TRIBUNE Donald Trump’s Inauguration Day letter to Joe Biden: An exclusive (very real) draft What Happened to the Homecoming Queen? Check Here for Free CLASSMATES.COM | SPONSORED People On Medicare Are Getting A Big Surprise This March MEDICAREPLAN | SPONSORED SUN SENTINEL Three women charged in attack on Popeyes employee that was caught on video WAYNE K. ROUSTAN SUN SENTINEL A man tried to apologize to a 23-year-old woman he is accused of molesting when she was a little girl. Instead, he was arrested WAYNE K. ROUSTAN ADVERTISEMENT by TaboolaSponsored LinksYou May Like The Poorest States In The US, Ranked MoneyWise.com Windows Users Don't Forget To Do This Before Sunday (Do It Now) Bright Life Are You Over 40? This game is a must - No Install Raid Shadow Legends If You Like to Play, this City-Building Game is a Must-Have. No Install. Forge Of Empires MOST READ • BUSINESS Is Biden to blame for rising gas prices? MAR 15, 2021 Is Biden to blame for rising gas prices? Claim your free money: The IRS owes millions to the unemployed MAR 17, 2021 Claim your free money: The IRS owes millions to the unemployed The red-hot housing market means you’re probably in for a tax increase 11:13 AM The red-hot housing market means you’re probably in for a tax increase CONNECT TRIBUNE PUBLISHING Chicago Tribune The Baltimore Sun The Morning Call of Pa. Daily Press of Va. The Daily Meal New York Daily News Orlando Sentinel Hartford Courant The Virginian-Pilot Studio 1847 COMPANY INFO Contact the Newsroom Place an ad Privacy Policy Manage Web Notifications Newspaper Online Careers Terms of Service Feedback Copyright © 2021, South Florida Sun-Sentinel

https://www.sun-sentinel.com/business/fl-bz-prescription-drug-kickback-settlement-20210319-6i4gjxjccfgfpinkjsckwpw72i-story.html