Pharmacy and Owner Accused of Billing Medicare for Undispensed Prescription Medications
U.S. Attorney David Metcalf announced Friday that West End Services, Inc. (WES) and its owner-pharmacist, Christopher Leon, have agreed to pay $825,000 to resolve allegations that they violated the False Claims Act. The settlement addresses claims that WES improperly billed Medicare for prescription drugs that were never actually provided to beneficiaries.
According to the U.S. Attorney’s office, the alleged fraudulent activity occurred between January 1, 2014, and February 24, 2019. During this period, WES reportedly submitted claims to Medicare for a variety of high-cost medications, including Latuda, Humira, and Abilify, despite the medications not being dispensed to patients.
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“Pharmacy fraud remains a priority for our office,” said U.S. Attorney Metcalf. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse. This investigation and resolution illustrate this District’s continued emphasis on combatting healthcare fraud, including pharmacy fraud.”
The investigation was conducted by the Department of Health and Human Services Office of Inspector General. Special Agent in Charge Maureen Dixon of the Philadelphia Regional Office emphasized the importance of integrity within the healthcare system. “Pharmacies are integral partners in patient care, and they are expected to act with integrity,” Dixon stated. “Today’s settlement reflects our commitment to working with our partners to ensure that taxpayer dollars are spent in an appropriate manner.”
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The settlement, which is based on WES and Leon’s ability to pay, adds to a list of similar pharmacy fraud cases handled by the District, including settlements with Pennmark Pharmacy and Future Pharmacy Inc. The U.S. Attorney’s office noted that the False Claims Act is a powerful tool in combatting this type of waste, fraud, and abuse.
The investigation was handled by Assistant United States Attorney Alfred J. Vogt and former Assistant United States Attorney Deborah W. Frey, with contributions from auditor George Niedzwicki.
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