Pharma Marketer Sentenced in Compounding Scheme
Pharmaceutical marketer Quintan Cockerell (Palos Verdes Estates, CA) was sentenced 7/12 to two years and five months in prison and ordered to pay over $59 million in restitution for conspiring to defraud the U.S., receiving illegal kickbacks in exchange for compounded medications prescription referrals, and money laundering.
According to the U.S. Justice Department, Cockerell worked with others to create and market expensive compounded medications that were not medically indicated. He and others used preloaded prescription pads that identified the high-billing formulations for doctors to easily select. “Cockerell, along with his co-conspirators at the compounding pharmacy that received the fraudulent prescriptions, implemented ‘standing orders’ that enabled the pharmacy to swap out ingredients in the medications originally prescribed by doctors to maximize insurance reimbursements,” the government contends. Cockerell and others also took doctors on expensive trips to Las Vegas, Mexico, and the Grand Caymans, among other places.
In an effort to conceal the illegal kickbacks Cockerell received, the unnamed pharmacy paid Cockerell’s wife at the time as a sham employee. “Evidence presented at trial demonstrated that Cockerell’s wife did not work at the pharmacy, but that Cockerell communicated with the pharmacy using her email address and received checks for his kickbacks in her name,” the Justice Department says.
In October, a federal jury in the Northern District of Texas convicted Cockerell of the charges.