OCI Lends Support in Drug Compounding Kickback Scheme

FDA’s Office of Criminal Investigations helped investigate a case where James Paul Adams (Cypress, TX), owner of One Source Healthcare Organization, agreed to pay the government $339,413 for allegedly accepting illegal kickback payments from OK Compounding. The government alleged OK Compounding paid substantial kickbacks to various third-party “marketers” in exchange for those marketers referring prescriptions for compounded drugs to OK Compounding. The kickbacks consisted of a share of the revenue generated by the marketers’ referrals, and these arrangements violated the Anti-Kickback Statute.

The investigation into OK Compounding also recently brought criminal charges against two men affiliated with the pharmacy. In December, a federal grand jury returned an indictment against Christopher Parks and Gary Lee, both of Tulsa, for violations of the federal anti-kickback statute and conspiracy to commit health care fraud.