Rubber Stamped Fraud

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Geriatric doctor (geriatrician) consulting and diagnostic examining elderly senior adult patient (older person) on aging and mental health care in medical clinic office or hospital examination room

Rubber stamps have lots of creative uses such as journaling, card making and scrapbooking. (They can also be used for repetitive signature signing and eliminating hand cramps.) Some unscrupulous individuals use rubber stamps to commit fraud. Kenneth Myers, Jr., 43, of Alpharetta, Ga., and co-defendant Joe David May, 40, of Alexander, used a rubber stamp to carry out a healthcare fraud scheme that stole $70,000 from TRICARE, the healthcare program for uniformed service members, retirees, and their families. (I’m quite certain the inventor of the rubber stamp never intended for it to be used that way.)

 

Myers is the ninth defendant to plead guilty in the TRICARE healthcare fraud scheme. He recruited TRICARE beneficiaries to receive very expensive compounded drugs that cost $340,000. He enticed the beneficiaries to participate in the scam with money, while co-conspirator May rubber stamped the prescriptions for the compounded medications without consulting the beneficiaries. (The co-conspirators probably figured what the beneficiaries didn’t know wouldn’t hurt them.)

When Myers found out that a federal agent was scheduled to interview a TRICARE beneficiary about his prescription, he told the man to lie about being examined by a doctor before obtaining his prescription. When the FBI questioned Myers about the case, he lied and said he was not involved in helping the beneficiary obtain a prescription, stating he instructed the beneficiary to consult with their own doctor. (Well, as you might imagine, that didn’t bode well with investigators.) 

Myers joins eight others who have pleaded guilty in connection with the $12 million TRICARE healthcare fraud scheme that generated prescriptions for expensive compounded drugs. When sentenced, Myers could get up to five years in federal prison, three years supervised release, and a $250,000 fine for conspiring to violate the Anti-Kickback Statute. The 10th co-defendant, May, awaits his trial, which is scheduled for December 2021.

Today’s Fraud of the Day comes from a Department of Justice press release, “Ninth Defendant Pleads Guilty in TRICARE Scheme,dated August 17, 2021.

LITTLE ROCK—A ninth defendant has pleaded guilty in connection with a $12 million scheme to generate prescriptions for expensive compounded drugs paid for by TRICARE. Kenneth Myers Jr., 43, of Alpharetta, Georgia (formerly of Little Rock), pled guilty to conspiring to violate the Anti-Kickback Statute today before United States District Judge Kristine G. Baker.

Myers collected nearly $70,000 for recruiting TRICARE beneficiaries to receive expensive compounded drugs, for which TRICARE paid over $340,000. Myers acknowledged offering TRICARE beneficiaries money to receive the drugs and that medical providers, including co-defendant Joe David May a.k.a. Jay May, 40, of Alexander, rubber stamped prescriptions without consulting the TRICARE beneficiaries.

 

 

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.