Prosecutors: Alleged Pain Cream Scheme Operator Threatened Co-Conspirators

Thursday, October 20, 2016 | 0

The owner of a compounded pain cream company that allegedly defrauded the military's health insurance program of about $100 million threatened to "take someone out" if he was turned in, once answering the door holding a handgun, Texas prosecutors say.

Richard Cesario, 49, of Plano, Texas, was arrested in February along with CCMGRX LLC co-owner, John Paul Cooper, 47, of Southlake. Tricare, the military health care program, says it paid more than $102 million for CCMGRX-generated compounded drug prescriptions in less than a year. All the while, prosecutors say Cesario and Cooper were dividing the profits among pharmacists, doctors, military families and themselves.

Cesario and Cooper have been in prison since February without bond. Prosecutors say they are a danger to the community.

Dallas News reported this week that Cesario began threatening his associates after finding out the federal government was investigating CCMGRX. He allegedly held a meeting in which he told co-conspirators that he knew ex-U.S. Special Forces members who could make people "disappear," and that he could "take care of anyone or anything."

Cesario's former attorney, Derek Staub, said in a court filing that Cesario "has no criminal record and has never been found to hurt anyone in his life."

Staub also said Cesario is not a flight risk, despite claims Cesario made to the contrary.

Prosecutors presented evidence at Cesario's detention hearing in March that he said he would flee to Costa Rica if he were caught. He owned a condo and $50,000 Hummer H2 there, and said he would be "untouchable," prosecutors said.

Staub said Cesario has traveled abroad only a few times, and he likely would not flee because of his "strong, longstanding ties to the community and family."

Ten more defendants were added to Cesario and Cooper's case last week, according to a 35-count superseding inditcment. Read WorkCompCentral's story here.