Former Pharmacy Executives Admit Roles in $33 Million Pharmacy Scheme

Category: CHAMPVA and Other Healthcare Fraud (VHA)
District: New Jersey

Jeffrey Andrews, of Clifton, New Jersey, pleaded guilty to violating the Anti-Kickback Statute, and Adam Brosius, of Clifton, New Jersey, previously pleaded guilty to conspiracy to commit healthcare fraud and conspiracy to violate the Anti-Kickback Statute. Andrews, Brosius, and others used mail-order pharmacy Main Avenue Pharmacy in Clifton to run an illegal kickback scheme involving compounded drugs. Main Avenue submitted claims to healthcare benefit programs for reimbursement, including Medicare, Tricare, and commercial payers in New Jersey and elsewhere. After being reimbursed, the company paid kickbacks to marketers who generated the prescriptions. The pharmacy received approximately $33 million in reimbursements for compounded medications alone from healthcare benefit programs; more than $5.8 million was paid by the federal payer TRICARE. The VA OIG, the Department of Health and Human Services OIG, and the US Department of Defense OIG Defense Criminal Investigative Service investigated this case.