Texas pharmacy owner indicted in connection with $10M Medicare fraud

The pharmacy was charging unecessarily high prices on medicationt to get millions of dollars. 

The pharmacy was charging unecessarily high prices on medicationt to get millions of dollars. 

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A Texas pharmacy owner was indicted in a Georgia grand jury on Thursday, August 4, for a drug price scheme where he generated $10 million through unnecessary, expensive prescriptions he obtained through bribes. The Boerne man, Lucky S. Ott Jr., 44, was indicted on one count of conspiracy, alleging he bribed doctors to write prescriptions for expensive drugs. 

Those expensive drug prescriptions were then reimbursed through insurance companies, said David Estes, U.S. attorney for the Southern District of Georgia, in a news release. Ott was the owner of Boerne Drug. The indictment alleges that Ott and his co-conspirators committed this drug price fraud on patients in Georgia. 

The Georgia patients’ information was obtained through the fraudulent use of a telemedicine call center. Boerne Drug would then fill those prescriptions, which were usually topical creams and gels, and send those unnecessary drugs to patients and collect the reimbursements from insurance companies. 

Ott and his co-conspirators collected $10 million through the scheme from the elderly people on Medicare, as well as military members and veterans on Tricare. They paid more than $1 million in bribes and kickbacks.

If convicted, Ott can receive up to 15 years in federal prison along with financial penalties and up to three years of supervised release after serving time. No parole is offered in the federal system, according to the news release. 

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