Guilty Plea in Compounded Rx Kickback Scheme
The Department of Justice says Robert Schneiderman, Langhorne, PA, pleaded guilty in New Jersey federal court to two counts of an indictment charging him with one count of conspiracy to commit healthcare fraud and one count of conspiracy to violate the Anti-Kickback Statute. A department statement says that from 2014 to 2016 Schneiderman and his conspirators used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, NJ, to run a fraud and kickback scheme involving compounded drugs like scar creams, pain creams, migraine medication, and vitamins. He was the president of Main Avenue Pharmacy and founder and CEO of its corporate parent.
The department says the scheme revolved around identifying compounded drugs that would yield exorbitant reimbursements from federal and commercial health insurers.
On compounded medications alone, it says, Main Avenue received over $34 million in reimbursements from healthcare benefits programs. Some $8 million of that was paid by federal payers. Schneiderman himself earned over $400,000 through the course of the scheme, the government says.
Conspiracy to commit healthcare fraud carries a maximum penalty of 10 years in prison, while conspiracy to violate the Anti-Kickback statute carries a maximum penalty of five years in prison. Both counts also are punishable by a maximum fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is set for 9/16, the department says.