Pharmacist Sentenced to Prison for Fraudulent Compound Drug Scheme

Monday, August 1, 2016 | 0

The owner of a chain of pharmacies in Michigan has pleaded guilty to a fraud scheme involving compounded drugs and will serve at least 16 months in prison, The Oakland Press reported.

Devenkumar “Deven” Patel, of Canton, must pay $560,000 in restitution and will be on supervised release for three years after he leaves prison.

The newspaper reported that Patel invoiced insurers for $600 to $1,000 for a pain cream that contained Ketamine and several non-controlled substances that cost him $40 to $50 to compound, the newspaper reported.

Patel, a licensed pharmacist, owned and operated five pharmacies and colluded with several doctors to fill fraudulent prescriptions, Drug Enforcement Administration agents said in court filings. Court records state Patel included his employees in the scheme, paid them bonuses for assisting him, destroyed records when he learned the feds were on to him and laundered money through his personal accounts, The Oakland Press reported.