MISSISSIPPI
A federal jury found a Biloxi, Mississippi physician guilty Friday for his role in an approximately $3 million compounding pharmacy fraud scheme, officials announced Monday.
Officials stated that Albert Diaz, M.D., 78, was convicted of one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation following a five-day trial.
Sentencing has been scheduled for May 22 before U.S. District Judge Keith Starrett .
“When individuals defraud our military’s healthcare system TRICARE, harming the health and welfare of our men and women in uniform, they will be met with swift prosecution, severe punishment and the loss of their illicit gains,” said U.S. Attorney Michael Hurst of Mississippi. “I applaud the tireless and determined work of these investigators and prosecutors in securing justice in this case. Justice prevailed and justice will continue to roll.”
“In the past five years, health care fraud schemes have cost Mississippi taxpayers hundreds of millions of dollars,” said Mississippi Special Agent in Charge Christopher Freeze.
According to evidence, between October 2014 and December 2015, Diaz participated in a scheme to defraud TRICARE and other insurance companies. He prescribed medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals he had not examined.
The evidence further showed that based on the prescriptions signed by Diaz, Advantage Pharmacy in Hattiesburg, Mississippi dispensed these medically unnecessary compounded medications and received reimbursement from TRICARE and other insurance companies totaling more than $3 million.
The trial evidence indicated that Diaz falsified patient records to make it appear as though he had examined patients before prescribing the medications, according to officials.
The Medicare Fraud Strike Force operates in nine locations nationwide.
Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.