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Pharmacy Owner Charged for Organizing More than $1 Million False Claims Scheme

Pharmacy Owner Charged for Organizing More than $1 Million False Claims Scheme

OKLAHOMA CITY – Attorney General Mike Hunter and Robert J. Troester of the U.S. Attorney’s Office announced today that a Mangum pharmacy owner has been charged with 40 felony counts relating to healthcare fraud for allegedly orchestrating a false claims scheme that bilked the Medicare and Medicaid systems out of more than $1 million.

A federal grand jury indicted Jeffrey Terry, 37, on March 5, after an investigation found he allegedly submitted false claims to SoonerCare and Medicare Part D for drugs that were never prescribed or dispensed to patients. The indictment was unsealed Friday.

Officials claim Terry received nearly $1.1 million in fraudulent proceeds from the scam.

Attorney General Hunter said fraud against the Medicaid system is unacceptable.

“The ability to combine state and federal resources is one of our best assets when fighting fraud and corruption,” Attorney General Hunter said. “I appreciate Mr. Troester and his team for continuing to collaborate with us in cracking down on healthcare fraud in the state and for helping us hold perpetrators accountable for these types of crimes. We must do everything we can to protect the Medicaid system, which serves Oklahomans in need.”

The investigation was led by the attorney general’s Medicaid Fraud Control Unit and the Department of Health and Human Services – Office of Inspector General, Audit Services. The U.S. Attorney’s Office is prosecuting the case with assistance from an attorney with the Attorney General’s Office, who also serves as a special assistant U.S. attorney.

“Protecting the health care system from fraud is critical to the stability and viability of the Medicare and Medicaid programs,” Troester said. “We are proud to have an active partnership with Attorney General Mike Hunter and his office where we work collaboratively together to fight health care fraud.”

If convicted, Terry faces up to 10 years in prison on each count and a fine of up to $250,000. Upon his release from prison he would also have to pay restitution to the state and federal government.

To read the indictment, click here.

All defendants are innocent until proven guilty.