By: Richard L. Smith
Two men have pleaded guilty to their roles in a $33 million kickback scheme run out of Main Avenue Pharmacy in Clifton, according to a statement from U.S. Attorney Philip R. Sellinger.
Jeffrey Andrews, 73, and Adam Brosius, 59, used the pharmacy to fraudulently obtain reimbursements for compounded medications, including scar creams and pain medications, by exploiting federal and commercial health insurance programs.
From 2014 to 2016, the scheme targeted insurers like Medicare and TRICARE, using prescription pads with lucrative drug formulas and distributing them to marketers who, in turn, worked with telemedicine companies and doctors.
The pharmacy would then fill the prescriptions, submit claims for reimbursement, and pay kickbacks to marketers based on the volume and value of prescriptions generated.
The illicit operation resulted in $33 million in reimbursements, over $5.8 million of which came from TRICARE alone.
The two defendants face up to 10 years in prison and significant fines.
Sentencing is scheduled for February 2025, with Andrews and Brosius set to appear in court on February 18 and February 20, respectively.