US authorities have found Scott Balotin and Thomas Jones guilty of conspiracy to commit health care fraud and ML. Each faces a maximum penalty of 10 years in federal prison.
Balotin was the owner and operator of the marketing firm Casepark. Casepark sales representatives marketed compounded medication, such as creams for pain and scars, to the beneficiaries of the TRICARE health care benefit program. These creams had very high rates of reimbursement from TRICARE.
TRICARE reimbursements for a one-month supply of such creams was anywhere between $4,000 and $17,000. Casepark received about 55% of the claim that TRICARE paid to a pharmacy that filled each prescription of the compounded medication. The sales representatives were paid a fraction of the claims.
Source: US Department of Justice