Smart Pharmacy

How’s this case going? I just heard that both Greg Balotin and Scott Balotin were both facing major lawsuits at the same time. What a family

 

Disgusting

 

Two Convicted For Conspiracy To Commit Healthcare Fraud Related To Kickbacks Involving Compounded Prescriptions And Tricare Beneficiaries
Jacksonville, Florida – A federal jury has found Scott Balotin (51, St. Johns) and Thomas Jones (52, Jacksonville) guilty of conspiracy to commit health care fraud and money laundering. Each faces a maximum penalty of 10 years in federal prison. The sentencing hearings are scheduled for January 18, 2022.

Balotin and Jones had been indicted on October 30, 2019.

According to evidence presented at trial, Balotin owned and operated Casepark, a marketing firm in Jacksonville. Casepark utilized sales representatives to market compounded medication, including creams for pain and scars, to health care benefit program beneficiaries. The creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000, for a one-month supply. Casepark focused its promotional efforts on TRICARE beneficiaries, based upon an understanding and belief that TRICARE would pay claims for the compounded medications. The prescriptions generated for the recruited TRICARE beneficiaries were directed to various pharmacies to be filled. Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to a pharmacy that filled each prescription. Casepark and other alleged co-conspirators paid the sales representatives a percentage of the paid claims they received from the pharmacies.

Other co-defendants who previously pleaded guilty to conspiracy to commit healthcare fraud related to this case include: Pablo Ortiz, Derwin Allen, David Stevens, and Sam Todd.

This case was investigated by the IRS – Criminal Investigation, the U.S. Postal Service – Office of Inspector General, and the Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorneys Ashley Washington, Mai Tran, and Julie Hackenberry.

 

I see Greg and Bill have started another entity. Guess people have caught on to their scam

https://topical.injuryscripts.com/our-team/

https://www.injuryscripts.com/about

 

https://www.docketbird.com/court-cases/The-United-States-of-America-et-al-v-Smart-Pharmacy-Inc-et-al/flmd-3:2014-cv-01453

Looks like the legal counsel for Smart Pharmacy just quit

 

“The official pharmacy of the Jacksonville Jaguars”…

https://unicourt.com/case/fl-duv-jacksonville-jaguars-llc-vs-smart-pharmacy-inc-et-al-1159893

 

Looking like all of Smart Pharmacy’s financial contributions to Gov. Ron DeSantis, and sleazy attorney tactics are going to result in a slap on the wrist from Collette B. Cunningham. Goes to show that you can steal a hundred million dollars from the government and only have to pay back a small percentage

 

I work in a pain management office here in Jacksonville. Our corporate lawyers and a few of our providers met with two women this past Thursday morning. I’m pretty sure this case isn’t completely over. I work the front desk. One of the ladies gave me her business card to pass along and it said defense criminal investigation services, Jacksonville area of responsibility

When I was in the lunchroom I heard one of our docs talking to our lawyer in his office and he was cursing up a storm because he is planning on going to Europe with his family for the holidays. He said that if he “gets called as a witness for this grand jury he’s gonna to be f’ing pissed! This was almost ten years ago”. Not sure of the specific crimes they were talking about

I was just looking to see if this pharmacy was still in business and stumbled on this website

 

https://www.justice.gov/opa/pr/two-jacksonville-compounding-pharmacies-and-their-owner-agree-pay-least-74-million-resolve

Two Jacksonville Compounding Pharmacies and Their Owner Agree to Pay at Least $7.4 Million to Resolve False Claims Act Allegations
The Justice Department announced today that Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations. The settlement amount is based on the defendants’ ability to pay.

“When pharmacies inflate their revenue with medically unsupported prescription ingredients, they compromise the quality of patient care and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of federal healthcare programs for personal profit.”

“A primary mission of the U.S. Attorney’s Office is protecting the Medicare and TRICARE programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This case exemplifies our commitment to pursue pharmacies and pharmacists who abuse federal healthcare programs at the expense of the taxpayers.”

Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia and Tourette’s disorder. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so. The defendants allegedly included the drug in the pain creams to increase their profits on prescriptions paid for by Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families. Both Medicare Part D and TRICARE reimburse pharmacies for the individual ingredients included in compounded drugs, thus defendants increased their reimbursement by adding aripiprazole to the combination of drugs used in their pain creams.

The government also alleged that the defendants improperly waived patient copayments to induce patients to accept the pain cream prescriptions. Although copayments may be waived in certain unique circumstances, such as on the basis of an individualized assessment of a patient’s financial hardship, the defendants allegedly routinely waived copayments without regard to patient need.

In connection with the settlement, Gregory Balotin has agreed to enter into a three-year integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.

“Pharmacies participating in Medicare are obligated to obey laws designed to protect both the integrity of this program and the quality of care provided to patients,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “With our law enforcement partners, our agency is committed to investigating alleged health care fraud to protect both federal health care programs as well as the individuals served by those programs.”

“We are grateful to the U.S. Department of Justice, the U.S. Attorney’s Office, and other state and federal officials for their unwavering commitment to protect taxpayer dollars and safeguard the TRICARE pharmacy benefit,” said Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division. “Their efforts ensure our service members, veterans, and their families continue to receive the highest-quality pharmacy benefit commensurate with the service and sacrifice they make for our nation.”

“Health care providers and suppliers that serve our nation’s active duty service members, military retirees, and their families are expected to meet the highest standards of ethical and professional behavior,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and its law enforcement partners will continue to investigate unprincipled health care providers that undermine the integrity of the DoD’s TRICARE program.”

The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined.

This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG, DCIS, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.

This matter was handled by Assistant U.S. Attorney Collette Cunningham for the Middle District of Florida, Trial Attorneys Nicholas Perros and Jessica Sievert of the Justice Department’s Civil Division, former Civil Division Trial Attorney Holly Snow (now an Assistant U.S. Attorney for the Western District of North Carolina), and former Civil Division Trial Attorney Andrew Jaco (now with the Justice Department’s Criminal Division).

 

Can confirm that this is ongoing. Feds still digging around on these guys

 

Fla. Judge Grants New Trial In Health Care Fraud Scheme
By Mark Payne
Law360 (November 2, 2023, 9:04 PM EDT) -- A Florida federal judge has granted a new trial to a business owner and one of his alleged patient recruiters convicted in a health care fraud scheme after last-minute evidence emerged about a cooperating defendant's previously undisclosed informant role with the U.S. Drug Enforcement Administration.
U.S. District Judge Marcia Morales Howard on Tuesday granted Scott Balotin and Thomas Jones' request for a new trial. Their motion came after Balotin and Jones learned, 90 minutes before a September sentencing hearing, that cooperating defendant David Stevens was involved in another case and also a confidential source for the DEA, both of which weren't previously disclosed.
"We made certain discovery requests from the government, and in connection with some of those discovery requests, they provided previously undisclosed reports and information with regard to cooperating witnesses who had testified at the trial," said Jones Walker Attorney David Weinstein, who represented Balotin during sentencing.
Balotin was indicted on charges of money laundering and health care fraud conspiracy in 2019 after his marketing firm, Casepark, which sold compound medication such as creams to help with pain and scars to Tricare beneficiaries, was accused of paying sales representatives a percentage of paid claims the firm received from pharmacies.
The creams were sold between $4,000 and $17,000 for a 30-day supply and had a high reimbursement rate for the marketing firm.
"The prescriptions generated for the recruited TRICARE beneficiaries were directed to various pharmacies to be filled," the U.S. Attorney's Office for the Middle District of Florida wrote in a release in 2021. "Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to a pharmacy that filled each prescription."
Jones, a doctor at Casepark alleged to have recruited patients for the scheme, was simultaneously indicted. The men were convicted at trial in 2021.
Stevens, a doctor and recruiter for a pharmacy involved in the alleged scheme, was also named in the original indictment. At the time, Stevens was already working with the DEA as a confidential informant, and when he learned of the charges, he agreed to cooperate.
Attorneys for Balotin and Jones learned of Stevens's DEA role when they requested additional discovery information.
The government provided a Brady/Giglio disclosure letter to Balotin's and Jones' attorneys
https://www.law360.com/articles/1740099/print?section=florida 12/19/23, 1:27 PM Page 1 of 2

that detailed Stevens' involvement in a pill mill investigation in Savannah, Georgia. Stevens had admitted to a role in the pill mill.
"He then began providing cooperation to DEA Savannah about his knowledge of criminal activity generally in the hopes of not being charged in that case," Assistant U.S. Attorney Ashley Washington of the Middle District of Florida wrote in the disclosure letter. "When Mr. Stevens later learned of this case, he also hoped to receive cooperation credit in this [Balotin and Jones health care fraud] case."
The letter further detailed Stevens' knowledge of other criminal conduct in a Jacksonville, Florida case, so he started working with the Jacksonville DEA. In 2019, Stevens also acted as a confidential source in a case in the Fourth Circuit.
During his time as an informant, Stevens divulged information about drug trafficking and bought OxyContin pills as undercover.
Balotin's and Jones' Oct. 16 motion for a new trial outlined further "serious discovery violations," including a previously undisclosed interview the DEA agents conducted with Stevens.
"I would do anything to stay out of jail and remain with my family," Stevens said to agents.
Balotin's and Jones' attorneys wrote in their motion that a jury should know about a witness who would "do anything" to stay out of jail.
"Committing perjury on behalf of the government is among the universe of things that qualify as 'anything,'" the attorneys wrote in the motion.
Balotin now must decide to keep the counsel obtained during sentencing as plans for the new trial move forward, according to Weinstein, who said they're pleased with the results.
"This is the way our system is supposed to work," Weinstein said.
The U.S. attorney's office declined to comment. Jones' attorney didn't immediately respond to requests for comment Thursday.
Balotin is represented by Edward R. Shohat and David S. Weinstein of Jones Walker LLP. Jones is represented by Noel G. Lawrence of Law Office of Noel Lawrence.
The government is represented by Michael J. Coolican of the U.S. Attorney's Office for the Middle District of Florida.
The case is United States v. Balotin et al., case number 3:19-cr-00191, in the U.S. District Court for the Middle District of Florida.
--Editing by Alex Hubbard.
All Content © 2003-2023, Portfolio Media, Inc.

 

https://www.justice.gov/d9/press-releases/attachments/2023/06/16/2023.06.14_-_smart_pharmacy_fca_settlement_agreement_-_executed_0.pdf


Link to civil settlement agreement

 

I no longer work there, but the hate on this thread is pathetic. For those that didn’t like working there, you could’ve found another job assuming anyone wanted to hire you.

The disdain for Geoff and upper management is classic. Do your job well and no one is gonna bother you.

And for the those that think their moral compass is so great…we weren’t the scum bags, the PMB’s were/are. The cartel of the pharma industry.

Grow up and god bless