Three Marketers Plead Guilty to Violating Federal Anti-Kickback Statutes After Recruiting Physicians to Write Unnecessary Prescriptions

Daniel Ferguson, John Frohrip, and Kevin Partin, pleaded guilty to violating federal anti-kickback statutes following allegations that they paid illegal kickbacks and recruited doctors to write prescriptions for expensive drugs as part of their health care fraud scheme.

According to the Department of Justice, the defendants recruited physicians to write prescriptions for complex drugs that would qualify for lucrative reimbursements from insurance programs. After the drugs were prescribed to patients, the defendants would then apply for reimbursements through various federal health care insurance programs and use the profits for their personal expenses.

Each of the defendants admitted to offering to pay kickbacks to the physicians they were attempting to recruit in their scheme. On many occasions they were successful in their recruitment, including the payment of $15,000 to Dr. John Main of Tulsa for his participation in the scheme.

The health care insurance programs that the defendants defrauded as part of their kickback scheme include Medicare, TRICARE, and FECA.

U.S. Attorney Trent Shores commented, “Kickback schemes undermine the integrity of government healthcare programs and raise healthcare costs for Americans. These greed fueled schemes frustrate patient-oriented decision-making because doctors make prescription and pharmacy decisions based on their personal financial enrichment,”. He added, “Professionals in the healthcare market in northern Oklahoma should be on notice by now that kickback schemes will be exposed and those involved held accountable.”.

The maximum penalty for this case includes a five-year stay in prison and a fine of up to $250,000 .

To learn more about this case or other instances of health care fraud, visit the Newman & Shapiro Whistleblower Help Center and blog!