Compounding pharmacies have been participating in different forms of healthcare fraud in recent years. These are pharmacies meant to form mixed medication for specific patients as per their medical needs. On the other hand, the prevalence of healthcare fraud schemes is well documented. The pervasiveness of such schemes is sometimes driven by the nature of compounded medication. However, any form of healthcare fraud can lead to harsh repercussions by the involved culprits. One of these cases was the one that involved Dr. Thomas Edward Sturdavant, a 56-year-old and a 55-year-old nurse called Freda Cal Covington.
These two individuals were sentenced alongside Dr. Shahjahan Sultan for their involvement in a conspiracy to commit healthcare fraud. According to the case presented, Sultan agreed with a Mississippi pharmacy to prescribe some expensive compounded medication for patients. In exchange, the pharmacy agreed to pay him a percentage of the reimbursement that It received from his referrals. This was 35% of the amount made from his referrals. In this case, Dr. Sultan offered Dr. Sturdavant a payment totaling to $900,000 for performing telemedicine services for some expensive compounded medication.
On the other hand, Nurse Covington had to play the role of recruiting patients who had insurance for expensive compounded medication. Additionally, the patients sent by Dr. Sultan to Dr. Sturdavant were not examined at all. They were only written the medication and the funds were billed to their insurance companies. Nurse Covington did a detailed recruiting from the members of the public to bring forth volunteers to participate in the scheme. Also, according to the evidence presented in the court, it is well established that the prescribed compounded medication had no medical effects on the patients.
According to the court proceedings, Sturdavant was ordered to pay a restitution fee of $1,628,409. Additionally, he was ordered to pay a monetary payment of $160,000 and sentenced to 24 months in prison in federal prison. On the other hand, Covington was sentenced to 18 months in prison. Additionally, to that, the nurse was sentenced to a 3 year supervised release after the sentence. Finally, Sultan was sentenced to 48 months in prison for his involvement in the scheme.
From this case, it is well established that the defendants presented in the court were punished for their deeds. This shows that healthcare fraud is a punishable crime and any alleged culprits stand a chance of being presented in court with some server consequences. However, healthcare specialists that seek legal assistance stand a chance of receiving better results from their lawsuits. The Healthcare Fraud Group stands to assist any healthcare providers and companies that fall victim to such a situation. Our main aim is to ensure that you are effectively represented in the court of law. Contact us at 888-402-4054 for free consultations.