An indictment against three individuals for their alleged involvement in various schemes to defraud Medicare, TRICARE, and private insurance companies, and their conspiracy to launder the proceeds has been unsealed. The conduct allegedly resulted in more than $180 million in fraudulent billings. Mitchell “Chad” Barrett, 54, of Gulf Breeze, Florida, David “Jason” Rutland, 41, of Bolton, Mississippi, and Thomas “Tommy” Shoemaker, 56, of Rayville, Louisiana were charged on May 27, 2020, in the Southern District of Mississippi. The indictment alleges that between September 2011 and January 2016, Barrett, Rutland, and Shoemaker conspired to and engaged in a scheme to defraud numerous healthcare benefit programs of more than $180 million, including more than $50 million from federal healthcare programs.
Using several pharmacies, including Gluckstadt Special Care Pharmacy and Compounding LLC, World Health Industries Inc., Opus Rx LLC, and Rx Pro Pharmacy and Compounding LLC, the defendants, as alleged, fraudulently formulated, dispensed, shipped, and billed insurance companies for compound medications in the form of topical creams and capsules, some of which contained controlled substances. To further facilitate their scheme to defraud healthcare benefit programs, the defendants allegedly conspired to and engaged in a scheme to solicit and pay kickbacks and bribes to marketers, physicians, other medical providers, and beneficiaries to refer, prescribe, and receive prescriptions for medically unnecessary compound medications. The defendants also allegedly conspired to and engaged in a scheme to launder the proceeds of their fraudulent activity by concealing the proceeds they obtained and conducting monetary transactions of a value greater than $10,000, including the purchase of numerous assets, such as real estate, luxury automobiles, a three-carat diamond, and other high-priced goods.
