Houston pharmacy owner arrested in $134 million Medicare fraud scheme and more

Houston pharmacy owner arrested in $134 million Medicare fraud scheme

A Houston, Texas, pharmacy owner and his accountant were arrested March 9 on charges of conspiracy to commit health care fraud to the tune of $134 million. (See Houston pharmacy owner charged in $134 million fraud scheme that paid for fancy cars, gambling debts, feds say, by Michelle Homer, KHOU11, March 9, 2021.)

According to the article, the indictment alleges that from late 2013 through March 2020, 4M pharmacies, owned by Mohamed Mokbel, 56, collectively received millions of dollars in payments from Medicare, Medicaid and private insurance companies based on fraudulent claims.

The funds were allegedly used, in part, to pay for Mokbel’s $1.5 million residence, a Ferrari, a Bentley and $15 million in gambling and casino expenses. According to the article, federal agents also say Mokbel transferred and controlled more than $6 million in health care fraud proceeds in CD accounts at banks.

Mokbel and 4M Pharmaceuticals’ accountant, Fathy Elsafty, 62, have each been charged with one count of conspiracy to commit health care fraud, three counts of health care fraud and four counts of money laundering.

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