HATTIESBURG, Miss. (WJTV) — Two Mississippi men pleaded guilty this afternoon in federal court for their roles in a multi-million dollar compounding pharmacy fraud that span across the United States.
Jason May, 40, and Gerald Scharr, 47, both stood in front of U.S. Judge Keith Starrett admitting they played a role in the nation’s largest health care fraud enforcement action by the Medicare Fraud Strike Force.
May, of Lamar County, plead guilty to conspiracy to commit health care fraud and money laundering. May, the Co-Owner and manger of operations at Advantage Pharamacy in Lamar County received approximately $192 million in reimbursements from TRICARE and other health care benefit programs.
Federal officials in court stated May transferred money from the fraud into a personal account.
Schaar, of Biloxi, pleaded guilty to conspiracy to commit health care fraud for acting as a marketer, soliciting to a physician to prescribe a compound drug to TRICARE users.
Federal officials added that on October 23, 2013, a unnamed physician prescribed the compound cream topical cream to a patient even though they did not see the patient.
May received nearly $2.3 million dollars in reimbursement from the scheme.
Court documents show the schemes involved billing Medicare, Medicaid, and TRICARE for unnecessary prescription drugs and medications. Often times the prescription were never bought or actually given to patients.
Both May and Schaar are convicted of all charges.
May will serve five years in prison, while Schaar will serve 10. Both men have to pay a $250,000 fine.
They are both currently out free on a $25,000 personal security bond. There sentencing will be held on October 17, 2017 in Hattiesburg.