Ten Michigan residents were indicted Dec. 18 in a $46 million copay fraud scheme, according to ClickOnDetroit.
The residents are accused of running pharmacies, some of which never opened, and submitting false reimbursement claims to defraud pharmaceutical companies. They allegedly submitted the false reimbursement claims to copay programs for drugs they hadn't bought or given to patients. Some of the submitted claims were for patients who didn't exist.
When a fake pharmacy was investigated, the group would reportedly close it and open a new pharmacy, often at the same address.
The 10 people received a total of about $46 million in fraudulent reimbursement claims between July 2014 and November 2019, according to ClickOnDetroit.
In total, 27 pharmacies in 15 Michigan cities were involved.
The 10 suspects were charged with wire fraud, mail fraud and money laundering. If convicted, they will be ordered to give up any money or property they gained from the scheme, including luxury cars and several houses, according to ClickOnDetroit.
"At a time when so many Michiganders are struggling to afford their medications, this alleged scheme is especially reprehensible," Matthew Schneider, U.S. attorney for Michigan's Eastern District reportedly said in a news release.
Read the full article here.
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