GRAND RAPIDS – A Dimondale man has been incarcerated in federal prison for participating in a medical fraud scheme that cost Michigan State University.
Daniel Brown admitted he asked a local doctor to sign a prescription for what the government called an expensive and medically unnecessary compounded pain relief cream and patch for MSU employees.
A pharmacy in Mississippi paid Mr. Brown, a drug sales representative, for directing prescriptions and charged MSU’s health insurance plan $2,000 to $3,000 per prescription, according to the government. It says.
Brown faces criminal charges against a pharmacy operator who faces more than $200 million in claims paid for “medically unnecessary pharmaceuticals resulting from illegal kickbacks,” according to the attorney’s office. The attorney’s office said it cooperated.Kickbacks have been paid to salespeople and doctors across the United States
The U.S. Attorney’s Office indicated that approximately $1.26 million of those claims related to MSU’s health insurance.
Brown’s attorney, Mike Nichols, said Brown helped bring down a fraud ring that originated in Mississippi.
“People who should have been prosecuted were not prosecuted, and despite Dunn playing a non-supervisory role in the matter, he is stuck with all that reparations,” Nichols said. He’s not bitter, and he’s looking forward to spending his time in custody and making the most of the rest of his life.”
Mississippi’s pain-killing scheme began circulating in 2012, with large-scale fraud involving high-priced painkillers and other pharmaceuticals.
Marketers asked pharmacists and medical professionals to prescribe drugs in exchange for bribes and kickbacks. Some people have asked family members or friends to pick up their medications, even if they don’t need medical care.
“Healthcare fraud can drive up costs for consumers, hurt businesses, and result in unnecessary medical treatment,” said U.S. Attorney Mark Totten.
U.S. District Judge Robert Jonker last week sentenced Brown to one year and one day in prison for conspiracy to commit medical fraud.
Brown will also have to spend three years on supervised release after getting out of prison and pay more than $1.26 million in damages.
The case was investigated by the FBI, the Department of Health and Human Services, the Office of the Inspector General, the Michigan State Police, and Michigan’s Business and Financial Investigations Unit Blue Cross Blue Shield, officials said.
Please contact Ken Palmer (kpalmer@lsj.com). Follow him on Twitter @KBPalm_lsj.
