Richard Hall, former owner of Rxpress Pharmacy and Xpress Compounding, was sentenced to four years and four months in prison for his role in an illegal kickback scheme that involved the submission of false claims to TRICARE and the U.S. Department of Labor, which administers the Federal Employees’ Compensation Act (“FECA”). Hall was previously convicted by a federal jury of four counts of paying and receiving unlawful kickbacks and one count of money laundering.

According to evidence presented at trial, Hall and his co-conspirators created and marketed compounded medications or medications intended to be custom-tailored for individual patients. Hall then engaged paid marketers who recruited doctors to write expensive compounded medication prescriptions for beneficiaries of TRICARE and FECA, which provides workers’ compensation benefits to federal workers with employment-related injuries.  The marketers attracted doctors by describing “investment opportunities” to profit. According to the indictment, Hall paid kickbacks and bribes for the referral of TRICARE and FECA beneficiaries. Hall also engaged in a conspiracy to launder the proceeds from the foregoing scheme. 

In addition to being sentenced to over for over four years in prison, Hall was ordered to pay over $59 million in restitution. 

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act litigation and health care fraud matters. If you need assistance with such a matter, please contact us today.