Pharmacist Charged With $21 Mln Healthcare Fraud

healthcarefraud march12

A federal court has convicted a pharmacist who was notoriously known as "Compound King" for committing a $21 million health care fraud.

After a six-day trial, George Phillip Tompkins, 75, of Houston, Texas, was charged with conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering as well as 11 counts of health care fraud, and wire fraud.

It was found that Tompkins and his accomplices billed the federal government approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments.

Tompkins and his Indian accomplice Anoop Chaturvedi created a scheme to generate compounded pain cream prescriptions and bill health care programs for injured state and federal employees. They created a separate entity titled Wellington Advisors to receive the program money from the Department of Labor (DOL) - Office of Workers Compensation Programs and Federal Employees Compensation Act.

Evidence introduced at trial showed that Tompkins sought to disguise illicit kickback payments as legitimate "marketing" expenses. He allegedly continued to ship compound gels and creams to patients even after they repeatedly complained that they did not want them.

Tompkins' wife was also part of the conspiracy. Marene Kathryn Tompkins, 68, pleaded guilty in January to one count of conspiracy to pay kickbacks.

Chaturvedi is considered a fugitive and a warrant was issued for his arrest in connection with the charges.

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