Former pharmacist Ravi Morisetty has been sentenced to two years in federal prison for his involvement in a health-care kickback scheme that defrauded the military’s insurance program out of more than $100 million, The Dallas Morning News reported.
The 44-year-old from Irving must also pay $7 million in restitution. Morisetty is the first defendant in the Trilogy Pharmacy case to be sentenced, after pleading guilty last year.
Jeffrey Fuller and Andrew Baumiller, owners of the pharmacy, also pleaded guilty and await sentencing. Ten more marketers and doctors are defendants in that case.
Morisetty admitted to paying kickbacks to Richard Cesario and John Cooper, who ran CMG RX, a Dallas company that marketed medications on behalf of compounding pharmacies to current and former U.S. military members and their families, the newspaper reported.
Prosecutors allege that CMG RX conducted a sham medical study that claimed to evaluate the safety and efficacy of compounded drugs, but was actually used to compile a list of beneficiaries who got paid to agree to receive the unnecessary drugs.
Morisetty admitted that Tricare, the medical program for service members and their families, paid his business, Alpha Pharmacy, more than $2 million for filling prescriptions for patients sent to him by CMG RX.
Morisetty also admitted he paid kickbacks to Today’s Marketing Agency to refer workers compensation patients to Alpha Pharmacy and his second business, Dashwood Pharmacy, the News reported. Those pharmacies got about $7 million for prescriptions written for more than 300 patients from the federal workers compensation program, according to court records, with Morisetty paying kickbacks disguised as marketing payments to Rose for those patients.