On July 12, the Department of Justice (DOJ) announced that Quintan Cockerell, 43, of Palos Verdes Estates, California, was sentenced to prison following his conviction on charges of conspiracy to defraud the United States, receiving kickbacks, and money laundering.
According to the DOJ, Cockerell and others participated in marketing expensive compounded medications, which were allegedly not always medically necessary. It is claimed that they used preloaded prescription pads to promote high-billing formulations, making it easier for doctors to prescribe these medications. The involved pharmacy was said to have also altered the prescribed ingredients to maximize insurance reimbursements.
The government claimed Cockerell and his associates offered various incentives to doctors, including “investment opportunities” to encourage them to prescribe these medications. These incentives purportedly led to a steady stream of prescriptions to their pharmacy, boosting their profits. To government believes that in order to conceal kickbacks, the pharmacy paid Cockerell’s wife as a sham employee. She was listed as an employee and payments for kickbacks were allegedly made in her name. The government claims the funds were used for personal expenditures, including vacations and yacht charters.
Back in October of 2023, a federal jury in the Northern District of Texas found Cockerell guilty of the charges. He has now been sentenced to two years and five months in prison and ordered to pay over $59 million in restitution.
Since March 2007, the DOJ’s Fraud Section, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. This underscores the government’s commitment to prosecuting healthcare fraud and protecting public resources.
As such, healthcare professionals should ensure their practices comply with all legal and ethical standards. This includes maintaining thorough documentation of all transactions and regularly reviewing and updating compliance programs to reflect current regulations.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with white-collar criminal investigations and healthcare fraud investigations. If you have any concerns or need guidance regarding healthcare regulations and compliance, we would be happy to assist. Additionally, if you are currently under investigation or involved in litigation, our experts can help you navigate these challenging issues. If you need assistance with such a matter, please contact us today.